The new month starts with a weaker USD index

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

US Dollar         1.2625-1.2725

Euro                 1.5250-1.5350

Sterling            1.7650-1.7750

The US Dollar Index starts the new month a little weaker as the US Bond market seems to have calmed down a little after a wild week that saw 10-year interest rates in the US jump to 1.6%, its highest level in about a year. Markets seems to have calmed as a result of Central Bank officials around the world reiterating that they are committed to prolonged periods of economic support to the world's economy as countries slowly recover from the pandemic. Overnight saw investors move back into stocks and at the moment the US Stock market is set to open higher which should help to put further pressure on the US Dollar.

The Canadian Dollar is a little stronger this morning as USD.CAD opens the week at the 1.2680 (0.7886) level down about 50 points from its overnight highs. The Loonie is pretty much mixed against the Euro and Pound so nothing at the moment to think the Loonie will go on an extended run. There were reports this morning that are calling for the price of a barrel of oil to hit $100 USD later in the year which would be a positive for the Canadian Dollar but it would also be very inflationary which would cause problems for recovery. It will be something to watch over the next few months.

Nothing of note on the calendar today, with stocks jumping on the opening we should see the US Dollar drop back and the Loonie able to make some small gains.