Loonie cannot make any sustainable gains in the short term due to the FED's continuous rate hike

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

US Dollar        1.3650-1.3750

Euro                1.4450-1.4550

Sterling           1.6600-1.6700

WTI Oil (opening level) $89.44

The US Dollar index is marginally weaker to close out the week as the markets reacted to Fed Chair Powell's comments that the Fed will likely hold on interest rates next month but will keep the option of another interest rate hike on the table if it is needed. In reality the market has given the Fed a hand with 10-year commercial interest rates rising near 5% for the first time in 10 years so there is no need for the Fed to hike rates at the moment as the market is doing it for them.

The Canadian Dollar lost a little ground across the board yesterday as USD.CAD rose to trade near the 1.3700 (0.7299) level for the first time in a couple of weeks. With the US Dollar continually supported by rising interest rates it will be hard for the Loonie to make any sustainable gains in the short-term.

The calendar has some secondary US inflation data on tap today along side Personal Spending and Income. These numbers are expected to support a strong US economy that is performing well despite high interest rates. Stocks are pointing lower for a second day so the US Dollar may be able to extend some more gains.