JPY Volatility After BOJ Holds Rates; USD/JPY Swings, CAD/JPY Gains.

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

US Dollar        1.3600-1.3700

Euro                 1.4600-1.4700

Sterling            1.7050-1.7150

WTI Oil (opening level) $83.89

The US Dollar index is a little weaker this morning which surprises me a little as with the latest GDP reading I would have thought that the Dollar would have jumped a bit. Yesterday saw the report that the US economy only grew by 1.6% in the first quarter which would be the slowest rate in almost two years, normally that would push the Dollar lower but the PCE 1st Quarter inflation report jumped to 3.7% so with inflation proving tough it should be enough to leave the Fed on the sidelines for the summer. The market gets some further monthly (March) PCE inflation data this morning so we will see how that affects the market.

The big mover overnight was the Japanese Yen which had a volatile night after the Bank of Japan left interest rates unchanged. USD.JPY fell to trade at 155.50 at one point before moving back higher to trade near 157.00. At some point the BOJ will need to intervene in the market to protect the weak Yen but at the moment they remain on the sidelines

The Canadian Dollar had a quiet night as it range traded against the US Dollar and picked up some small gains against the other currencies. The Loonie was also able to pick up some larger gains against the Yen with CAD.JPY moving higher to trade near 115.00 at one point.

Stocks had a tough day yesterday but may rebound this morning as both Microsoft and Alphabet (Google) produced better than expected results. Look for the US Dollar to remain stable ahead of today's inflation data.