USD index fell by over 2% this month

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

US Dollar         1.2200-1.2300

Euro                 1.4800-1.4900

Sterling            1.7000-1.7100

The US Dollar Index is marginally stronger this morning as it ends the month on a positive note after it fell over 2% during the course of the month. Yesterday the US first quarter GDP come in at 6.4% which was slightly better than the market expected and when you compare it to the EU growth numbers this morning that showed EU growth dipping into negative territory it is no wonder that US stocks are booming and the Dollar is holding its own.

The Canadian Dollar has been the biggest winner of the past week with its huge rally to end the month. Prior to the BOC announcement of higher interest rates down the road USD.CAD was trading at 1.2600 (0.7936) and this morning the currency pair opens the day at the 1.2275 (0.8147) level which is a considerable move in a short period of time. The Loonie is also benefitting from higher commodity prices as the world's producers struggle to keep up with global demand. I think you will see USD.CAD level off for a little while in the short-term but certainly another run for the Loonie might be on the cards in the coming weeks.

To the end the month we get the Canadian GDP report for February, markets are looking for a small gain as the country yet again came out of a lockdown, a very strong number should help the Loonie get a little stronger.