British pound remains under pressure

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

US Dollar             1.3700-1.3800

Euro                     1.3100-1.3200

Sterling                1.4500-1.4600

WTI Oil (opening level) $79.00

The US Dollar index is again higher this morning as the pressure on US interest keeps rising, this morning the US 10-year treasury bond hit 4% for the first time since 2010. Sterling remains under pressure as the Bank of England announced they would step in and buy Government bonds to try and stabilize the financial markets in the UK. Sterling had a very volatile night with GBP.USD trading as high as 1.0720 before falling to 1.0550 this morning. This volatility in the UK markets will continue for some time as the Government policy is directly opposite to what the Bank of England is doing to fight inflation.

More of the same for the Canadian Dollar as USD.CAD moved as high as 1.3810 (0.7241) before dropping a little lower to start the North American session. As well the Loonie picked up some strength against the other currencies so our Dollar continues to outperform a lot of the world's currencies, it is just getting crushed against the US Dollar like most other currencies.

Nothing of note on the calendar today, tomorrow we get the Canadian GDP report for July. Ahead of this after a down day again yesterday stocks are pointing lower on the opening, the Russian sabotage of the natural gas pipeline sent the energy markets soaring for a while and now the next step in the war in Ukraine (after Russian annexation) will keep markets nervous and will help to support the Dollar.