Canadian dollar extends its gains against the major currencies

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

US Dollar             1.2800-1.2900

Euro                     1.3500-1.3600

Sterling                1.5550-1.5650

WTI Oil (opening level) $111.85

The US Dollar Index is again unchanged this morning as the currency market continues to wait in the next round of inflation data and interest rate changes. Stocks fell yesterday as the US Consumer Confidence report showed a bigger than expected drop and the markets were led lower by a big drop in tech stocks. Today the market is showing a positive start to the day but they will be watching the scheduled speeches from the leaders of the ECB and US Federal Reserve to get their sense of direction, markets will be looking to see specifically what they say about the fight on runaway inflation. We could see some added volatility this morning if markets feel they are not getting tough enough to combat high inflation.

The Canadian Dollar continues to hold its own against the US Dollar as it opens the day near the 1.2850 (0.7782) level but it has been able to extend some gains against the Euro and Sterling so the Loonie continues to show signs of promise.

In addition to the list of Central Bank speakers today the markets will be watching the final report for the US 1st quarter GDP. It looks like the economy will have grown about 8% during the quarter and it should come in as expected, only a big change should give the market some angst.