Rapidly growing Chinese economy puts pressure on the USD index

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

US Dollar         1.2500-1.2600

Euro                 1.4950-1.5050

Sterling            1.7200-1.7300

The US Dollar Index in another quiet overnight session is marginally weaker again this morning as US interest rates continue to fall back and elsewhere in China the Chinese have reported record growth rates in the first quarter of the year. Overnight the US 10-year Treasury yield fell to trade at a rate of 1.528% moving further away from the high of the year recorded earlier in January.

The Chinese Government reported that their economy grew at an astounding 18.3% in the first quarter of the year and Retail Sales grew 34.2% in the month of January alone. Overnight stock markets for the most part ignored the reports of out China as they were mixed during the session but clearly the Chinese economy is performing better than other economies at the moment which should continue to put pressure on the US Dollar.

The Canadian Dollar continues to range trade in quiet markets. USD.CAD opens the day at the 1.2500 (0.8000) level, it has briefly traded below this level a few times in the past week but each time it has quickly pulled back higher.

With only US secondary data on the calendar today and stock markets that will remain mixed I don't expect that the Canadian Dollar will move around much. Look for another attempt to break the 80 cent (1.2500) level as the Loonie looks for its next breakout.