The Canadian dollar continue its recovery against the Pound and U.S. Dollar

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

US Dollar         1.3150-1.3250

Euro                 1.4300-1.4500

Sterling            1.6750-1.6850

WTI Oil (opening level) $68.51

The US Dollar index is stronger this morning and stock markets are all lower as market investors looked at the renewed emphasis from the world's Central Bankers to restart the cycle of interest rate hikes to combat persistent inflation. The Euro was the hardest hit currency overnight as EUR.USD fell almost 100 points quickly as very poor economic data was reported out of the Euro economy.

In his final day of testimony to Congress Fed Chair Powell again indicated that more interest rate hikes are on the way for the US but he was more cautious in his speech as he indicated that they will be watching the data closely before proceeding with the hikes. Either way the Dollar is benefitting from his comments and stocks continue to suffer.

The Canadian Dollar has been quite resilient against the US Dollar despite the fact that it lost about 50 points last night. USD.CAD still trades near the 1.3200 (0.7578) level which is pretty good considering what is going on at the moment. The Loonie was able to extend some gains against the weaker Euro overnight with EUR.CAD falling to 1.4330 before rebounding a little this morning. Overall, not a bad week for the Loonie.

It looks like another tough day for stocks this morning as the threat of Central Bank interest rate hikes and a slowing economy is weighing on the markets. There could be some room for USD.CAD to move a little higher today but for the most part the currency markets should remain steady.