American dollar remains supported as investors buy up U.S. Treasury bonds
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2950-1.3050
Euro 1.3625-1.3725
Sterling 1.5850-1.5950
WTI Oil (opening level) $114.25 (down $575 since yesterday)
The US Dollar Index is marginally stronger this morning as stocks are pointing much lower on the opening, the Euro and Pound are all lower, the US housing market is showing signs of slowing and the fears of a global recession are beginning to grow as Central Bank interest rate hikes around the world are creating fears in the market. With this environment the US Dollar will remain supported as investors will flock to high yielding US Treasury bonds in the short-term.
The Canadian Dollar opens the day weaker with USD.CAD back near the 1.3000 (0.7692) level, the Loonie did trade stronger early in the day as the Canadian Retail sales report showed sales were 0.9% higher and that the Canadian economy is still quite resilient in the face of higher interest rates and persistent inflation. Unfortunately, with the strength of the US Dollar overnight and weakness in global stock markets the Loonie could not hold onto these gains and once again it trades weaker.
The Loonie is front and centre again today with the May inflation report that is expected to show a rate of 7.4% up from 6.8% last month. This will add fuel to the fire for the Bank of Canada next month and at the very least a 0.5% interest rate hike is on the cards.
The US Dollar should remain supported throughout the day as stocks are pointing much lower on the opening with the Dow Jones down 370 points as I write. The Biden administration wants Congress to pass a gasoline tax holiday for at least the summer so with that and a slowing economy the oil price has dropped over the last few sessions.
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2950-1.3050
Euro 1.3000-1.3100
Sterling 1.5250-1.5350
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3000-1.3100
Euro 1.5400-1.5500
Sterling 1.7050-1.7150
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2650-1.2750
Euro 1.4100-1.4250
Sterling 1.6950-1.7100