Currency market traders keep their eyes on the upcoming Federal Reserve report

Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2050-1.2150
Euro 1.4750-1.4850
Sterling 1.7050-1.7150
The US Dollar Index is marginally stronger this morning as markets await the release of the Federal Reserve report minutes from their last policy meeting, specific investors will be looking to get a sense if there is a growing worry among the committee about the pace of inflation in the US. If the Fed indicates that they may have to rethink their current stance on inflation then you will see enhanced volatility throughout the day and the Greenback should jump significantly.
Today's it is the Canadian Inflation report that is front and centre and the market is expecting an annualized inflation rate in April of 3.2%. The rate in March was 2.2% so this would be a significant jump and well ahead of the Bank of Canada's comfort zone of 2.0%. Like the Fed the BOC said inflation will be transitory and they will maintain their current stimulus plan, ahead of the report USD.CAD is trading at 1.2070 (0.8285) as the Loonie was not able to break the 1.2000 level yesterday and traded weaker throughout the day.
Post Inflation Report.
The April Canadian Inflation rate came in at 3.4% which is higher than the market expectation.
USD.CAD has dropped about 20 points on the release of the news so the Loonie is a little stronger. We will see if the Loonie can hold onto this strength ahead of the US Federal Reserve report later this afternoon.
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2650-1.2750
Euro 1.3925-1.4025
Sterling 1.6600-1.6700
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3650-1.3750
Euro 1.4700-1.4800
Sterling 1.7125-1.7225
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2025-1.2125
Euro 1.4650-1.4750
Sterling 1.7050-1.7150