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US Dollar index hits 5-month high on strong manufacturing data: Federal Reserve's interest rate strategy and impact on Canadian Dollar


02.04.2024
US Dollar index hits 5-month high on strong manufacturing data: Federal Reserve's interest rate strategy and impact on Canadian Dollar

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

US Dollar        1.3500-1.3600

Euro                1.4550-1.4650

Sterling           1.7000-1.7100

 

WTI Oil (opening level) $84.90

 

The US Dollar index is stronger this morning as it hit its highest level in 5 months on the back of higher-than-expected manufacturing data which showed that manufacturing in the US rose for the first time since September 2022. There is no doubt that the US economy is performing quite well despite the high interest and this current data may give the Federal Reserve room to keep interest rates where they are in their battle against inflation.

The Canadian Dollar lost a little ground in a tight overnight trading range, USD.CAD hit a high of 1.3585 (0.7361) before pulling back a little this morning. The Loonie was able to make small gains against the other currencies yesterday so overall our Dollar is hanging in ahead of Friday's Employment report.

Stocks in the US ended the day lower yesterday while Canadian markets had a small jump higher, this morning US stocks are again pointing lower so the US Dollar should remain supported. The US calendar has some early employment data in the form of Job Openings but for the most part the markets will get ready for Friday's reports.



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Also read
07.03.2024

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

US Dollar        1.3475-1.3575

Euro                1.4650-1.4750

Sterling           1.7150-1.7250

04.12.2020

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

US Dollar         1.2800-1.2900

Euro                 1.5550-1.5650

Sterling            1.7250-1.7350

21.12.2022

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

US Dollar             1.3600-1.3700

Euro                     1.4450-1.4550

Sterling                1.6475-1.6575