Financial analysts suggest that strong economic numbers in the U.S. will allow another interest rate rise

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

US Dollar        1.3450-1.3550

Euro                1.4300-1.4400

Sterling           1.6400-1.6500

WTI Oil (opening level) $88.92

The US Dollar index is stronger this morning as it hit a 10-month high yesterday, Fed officials were commenting that the strength in the US economy will allow another interest rate hike and rates will be able to stay higher longer while inflation moves back towards 2%. US 10-year Treasury yields which is the benchmark product in the US rose to trade at 4.566% which is the highest level for these bonds in 16 years, clearly the market thinks high interest rates are here to stay.

The Japanese Yen hit its lowest level of the year overnight as US Dollar strength pushed USD.JPY to a high of 149.20, the markets are watching to see if the Bank of Japan intervenes in the FX market to start selling US Dollars.

The Canadian Dollar lost ground yesterday as USD.CAD moved back towards the 1.3500 (0.7407) level before recovering a little this morning, once again we see the Loonie trading at the mercy of the US Dollar and I see no change to that situation for a while. On the positive note the Loonie did not lose any ground to the other currencies.

Nothing of note on the calendar for today, stocks are going to be in for another tough day as the rising interest rate in the US is keeping the stock market on its back foot. Later in the week we get both the US and Canadian GDP reports, ahead of those reports the US Dollar should remain supported.