USD surges: Japanese Yen at 34-year low sparks bank of Japan emergency meeting

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

US Dollar        1.3550-1.3650

Euro                1.4675-1.4775

Sterling           1.7100-1.7200

WTI Oil (opening level) $81.32

The US Dollar index continues its strong run as it is again much higher this morning. It is particularly stronger against the Japanese Yen as USD.JPY hit a 34-year high near the 151.90 level and has prompted an emergency meeting at the Bank of Japan to decide what to about the weak Yen. After increasing interest rates, a couple of weeks ago the Bank of Japan is now faced with a weaker Yen which will help to fuel inflation at home and put the economy in peril, in my opinion they must now intervene in the currency markets to support the Yen.

The Canadian Dollar has been pushed lower on the back of the stronger US Dollar but while it is weak against its Southern neighbour it is holding its own against the other currencies so in reality the Loonie is not doing that bad. The Loonie also picked up some strength against the Yen as CAD/JPY hit a high of 111.70 before falling back a little in the overnight session, I am pretty sure that this is an all-time high for CAD.JPY.

Stocks continue to push to new record levels and look set to jump higher again today so the Dollar may give back a little strength in today's session but for the most part should remain supported. The Loonie will remain under pressure ahead of tomorrow's GDP report.