American Dollar gains back some strength as the US interest rates rise again

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

US Dollar         1.2600-1.2700

Euro                 1.5200-1.5300

Sterling            1.7600-1.7700

The US Dollar Index is marginally stronger this morning as stocks around the world are lower as a result of a bounce back in higher US interest rates. Yesterday saw the US 10-year yield jump again to 1.49% overnight and investors are worried that rates are on there way back to last weeks high of 1.6%. Investors at the moment seem fixated on the fact that interest rates and inflation will continue to rise as a result of the massive stimulus programs being implemented by governments around the world so they are reacting to even the smallest jump in rates. Until interest rates find their new level, I think we will see lots of volatility in the US Dollar.

The Canadian Dollar is marginally weaker but firmly in the middle of the 1.2600-1.2700 trading range. Interest rates are starting to come under pressure here in Canada as well as several of the banks increased some of their mortgage rates yesterday. I don't think the Canadian market has to be concerned yet about rising interest rates but it will be something to watch for later in the year.

Nothing on the calendar for today, markets will get set for the US jobs report tomorrow that should show a gain in Employment of around 200k new jobs. The Canadian report is the following week.