Currency Market Insights: US Dollar Steady Near 8-Week High Amid Interest Rate Uncertainty and Global Economic Shifts

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

US Dollar        1.3650-1.3750

Euro                1.4650-1.4750

Sterling           1.7275-1.7375

WTI Oil (opening level) $80.79

The US Dollar index is marginally weaker this morning but still trades near am 8-week high, the Greenback continues to garner support from uncertain interest rate cuts in the US, far-right gains in European elections pushing the Euro weaker and a Japanese Yen that is approaching 160.00 against the US Dollar. Remember when I said that Central Bank intervention rarely works, the Central Bank of Japan spent nearly 10 Trillion worth of Yen defending the currency near the 150.00 level a couple of months ago and now USD.JPY trades near 160.00. Intervention is a very weak currency tool unless the Central Bank is ready to follow up to defend their currency with other monetary tools.

The Canadian Dollar was able to extend some small gains against the US Dollar as USD.CAD dropped below the 1.3700 (0.7299) level overnight but the Loonie did lose last week's strength against the other currencies so overall the Loonie continue to range trade and is not making any great progress.

It is a busy week on the calendar to close out the month as we get Canadian inflation data which the Bank of Canada will be looking closely at, on Thursday we get the final GDP reading on the US 1st Quarter but more importantly on Friday we get the Core PCE Price index which is the Fed's preferred reading of inflation. Might be a good plan to get your orders in early this week as the currency markets could get quite volatile.