CAD index drops significantly over the last 24 hours

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

US Dollar         1.2525-1.2625

Euro                 1.4850-1.4950

Sterling            1.7250-1.7350

The US Dollar Index is considerably stronger and stocks are lower this morning as the financial markets react to the US Federal Reserve meeting minutes being released yesterday. The Fed has come out and said that while they do not yet have a timeline to remove stimulus from the economy, they could see them starting to remove stimulus earlier than first predicated and then a possible interest rate hike in late 2022 which would also be earlier that they first thought.

The Euro also rebounded this morning when the European Central Bank came out with the results of their strategic review and they indicated that they would allow inflation to run hot in the short-term as other Central Banks are willing to do.

The Canadian Dollar has borne the brunt of the stronger US Dollar and Euro. USD.CAD has jumped to trade as high as 1.2585 (0.7946) overnight before falling back slightly, EURO.CAD almost reached 1.4900 this morning so that is a huge drop for the Canadian Dollar over the last 24 hours. The Loonie will probably recover a little this morning as the Canadian markets get set for the next bit of news which is the Canadian Employment report due out tomorrow. US Dollar sellers may want to take advantage of this move and US Dollar buyers may want to see if we get a small pullback later in the day.