The market is awaiting weaker-than-expected inflation numbers

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar         1.3450-1.3550

Euro                 1.4700-1.4800

Sterling            1.6700-1.6800

WTI Oil (opening level) $81.50

The US Dollar index is marginally weaker this morning as the markets gets set for the US March inflation numbers. The market is expecting a year-over-year inflation rate of 5.1% which will be down from the 6.0% reading in February but it is expected that the Core Inflation rate will have ticked a little higher. It will be a busy day regardless of what the inflation numbers are as the market also gets the release of the Fed meeting minutes from their last meeting so the market will have some solid data to get a good sense what the Fed will do in early May.

The Canadian Dollar was able to pick up some strength overnight as it dipped to a low of 1.3450 (0.7435) before giving back some of that strength early this morning. Canadian market watchers will be waiting for the Bank of Canada interest rate announcement later this morning where it is expected that once again, they will leave interest rates at current levels. Investors will also look to the Bank's quarterly Monetary Policy report to get a sense of what the Bank thinks about the current Canadian economy., of particular interest to investors will be the Bank's take on inflation and the possibility of a recession here in Canada. We could see some added volatility this morning so makes sure you get your orders in early to take advantage of it.

Stock markets after a good day yesterday are showing a positive opening as they await all the news this morning. A weaker than expected inflation number should be good for stocks and help to push the US Dollar a little lower, under this scenario the Loonie should be able to make some small gains.