USD index depreciates as inflation data pleases investors

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

US Dollar              1.2475-1.2575

Euro                       1.4650-1.4750

Sterling                 1.7300-1.7400

The US Dollar Index is unchanged this morning but that was after it traded a little weaker yesterday after the release of the latest's round of inflation data in the US. Year-over-year inflation came in at 5.4% which shows that inflation is running hotter than normal times but investors are pleased that the pace of inflation is slowing which should put some pressure on the Greenback to give up some gains.

The Canadian Dollar remains range bound against most currencies as USD.CAD opens the day near the 1.2500 (0.8000) level which is the lowest level in a few days. The Loonie held onto its gains against the other currencies so overall a good showing for the Canadian Dollar after the inflation numbers.

Nothing of note on the calendar today so the currency market should remain quiet, USD.CAD should remain near current levels in a quiet North American market.