US Dollar Slightly Weaker Ahead of Inflation Data; Canadian Dollar Steady Against Greenback

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

US Dollar        1.3600-1.3700

Euro                 1.4740-1.4850

Sterling            1.7500-1.7600

WTI Oil (opening level) $81.24

The US Dollar index is marginally weaker this morning as the market minimally reacted to Powell's testimony that while inflation is moderating the Fed is not sure that the drop is sustainable at the moment. The market will get further inflation data today in the form of the June report and it is expected that the annual inflation rate will drop from 3.3% to 3.1% which is still well above the 2% target level that the Fed and other Central Banks prefer. The Core Price index is expected to stay steady at 3.4% which will probably prevent the Fed making any interest rate cuts in the near future.

The Canadian Dollar continues to range trade against the Greenback with USD.CAD trading near the 1.3630 level (0.7337) this morning but it did lose some ground to both the Euro and Pound over the last couple of days. There is nothing on the immediate horizon that will help the Loonie so I look for it to continue to trade with a weak bias.

Stocks continue to move to new record highs but will start the day a little lower as they to await the inflation data. A higher than expected number will see the stock market drop off and the US Dollar soar, it could be an interesting morning.