It is expected that the U.S. CORE PCE index will show an increase in the inflation rate

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

US Dollar        1.3450-1.3550

Euro                1.4650-1.4750

Sterling           1.7100-1.7200

WTI Oil (opening level) $76.13

The US Dollar index remains supported as the North American market starts a very heavy data week led by some US inflation data on Thursday. The US CORE PCE Index which is the US Federal Reserve's preferred measure of inflation is expected to show that inflation in January jumped by over 0.4%, if the rate comes in as expected markets will push the US Dollar higher as there will be little chance that the Fed will cut rates in May of this year. You will also see stocks get hit pretty hard so it will be a busy week.

The Canadian Dollar lost some ground to the market, USD.CAD opens the day up near the 1.3500 (0.7407) which is about 70 points higher than where I left it on Thursday. We also get some important data this week for the Canadian market in the form of the GDP report for December. It is expected that the economy is still close to recession with little positive outlook in the short-term which won't help the Loonie.

Nothing much on the calendar today so look for USD.CAD to range trade around the 1,3500 level as we await further details later in the week.