Canadian Dollar is unsteady as investors await the Monetary Policy report

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

US Dollar             1.2600-1.2700

Euro                     1.3700-1.3800

Sterling                1.6400-1.6500

WTI Oil (opening level) $101.52 (first time back above $100 in a few sessions)

The US Dollar Index is marginally higher this morning as the Dollar continues to benefit from extremely high inflation numbers in the US and further calls for the Federal Reserve to move faster and stronger on interest rate hikes. Inflation is not just a US problem as the UK reported inflation jumping to 7% last month and New Zealand's central bank increased their interest rate by 0.5% (biggest hike in 22 years) in a warning about inflation in Asia.

The Euro is also weaker this morning as all talks at stopping the conflict in Ukraine have ended and Putin has said the invasion will continue until their objectives have been achieved.

The Canadian Dollar had an up and down day yesterday as USD.CAD opens the day at the 1.2658 (0.7900) level. All eyes will be on the Bank of Canada later this morning as they are sure to announce a 0.5% increase to thein key lending rate, but the focus will be on the Monetary Policy report which will indicate what they are looking for the economy in the coming months. With the oil price jumping and interest rates rising it would not surprise me if we see the Loonie extend some gains today.

Stocks are pointing a little higher on the opening today after a down day yesterday, the US Dollar should remain steady throughout the day.