Japanese Yen reaches the new lows

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

US Dollar             1.3125-1.3225

Euro                     1.3000-1.3100

Sterling                1.5000-1.5100

WTI Oil (opening level) $86.67

The US Dollar index is again stronger this morning as positive secondary economic data out of the US yesterday helped push the Greenback higher yesterday and into the overnight session. USD.JPY traded as high as 144.38 overnight which is a level last seen in 1998, EUR.USD fell to trade at 0.9880 which is that currency pairs lowest level since 2002. The US Dollar remains supported as the energy crisis in Europe and an aggressive Federal Reserve pushes investors to the safe haven of the US Dollar. At the moment and certainly in the short-term there is no end in sight to US Dollar strength.

The Canadian Dollar is weaker this morning against its Southern neighbour as USD.CAD moves back near the 1.3200 (07576) level but in fact the Loonie is doing much better than most other currencies. The Loonie has picked up strength both against the Pound, Yen and Euro so hopefully it can continue to hold its own against the Dollar.

Today will be a big day for the Loonie as all market eyes will be on the Bank of Canada as they announce their latest interest rate hike. It is expected that their key lending rate rate will jump 0.75% to 3.25% (keeping pace with the US Fed), this may help the Loonie recover a little today but I would not expect a big jump as the market has already priced in this rate hike into current rates. If the Bank comes out and says that they will continue to be aggressive then look for the Loonie to get a boost.

Stocks are pointing lower to start the day after another down day yesterday so that should also put pressure on the US Dollar index to keep rising.