USD index continues to climb higher

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

US Dollar         1.2325-1.2425

Euro                 1.4675-1.4775

Sterling            1.7150-1.7250

The US Dollar index is marginally stronger this morning in what was a quiet overnight session in the currency markets. The Greenback continues to see strength from the statement by the US Federal Reserve statement where they looking to increase interest rates twice in 2023 and they may start an early end to their stimulus program once the economic numbers show the recovery is under way.

The US made its biggest gains against the British Pound last night as that country has seen a large rise in the number of Delta variant virus cases over the past few weeks with daily numbers now reaching what they were back in February. On top all the virus troubles in the UK the Conservative government lost a by-election yesterday and unrest in Norther Ireland continues over the Brexit deal, it looks like Sterling could be on the back foot for a while.

The Canadian Dollar is unchanged against the US Dollar this morning and has settled into its new range opening the day at the 1.2360 (0.8091) level. The Loonie was hit hard by the strength in the US Dollar and has now most likely has lost any benefit it was receiving from higher commodity prices. Over the last few days, a large swath of commodities have given up their big jump in prices that they saw earlier in the year so we could be seeing a lot of investors buying into the notion that inflation will only be temporary, this is just another reason the Loonie may have a tough time pulling back recent losses.

Nothing on the calendar for today so look for USD.CAD to remain range bound near the 1.2400 (0.8064) level until next week.