CAD gains some strength against major currencies

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

US Dollar             1.2450-1.2550

Euro                     1.4200-1.4300

Sterling                1.6950-1.7050

The US Dollar index is marginally stronger once again this morning as the markets react to an overnight increase in US Treasury rates on the expectation that the Fed will be forced to increase interest rates in March to try and stem the high rate of inflation. Overnight the 10-year Treasury bond traded above 1.83% and the 2-year bond traded above 1.00% for the first time since 2020. Clearly markets are expecting the Fed to act sooner than later and are pricing it into the bond market.

The Canadian Dollar was able to hold its own overnight against the US Dollar and was able to make some small gains against the other currencies. The Loonie was helped by a further jump in the oil price that pushed a barrel of oil to trade at $84.65 as I write. I still think the Loonie will fall in the coming weeks as higher interest rates in the US will continue to put upwards pressure on the US Dollar but for now the Loonie is hanging in there.

Nothing of note on the calendar for today, North American stocks are pointing lower on the opening as the US markets paly catch up after yesterday's holiday. If there is a big drop in stocks today then you will see the US Dollar move forward.