Market Watch: Fed Chair Powell's Testimony and Bank of Canada Interest Rate Announcement Awaited

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

US Dollar        1.3525-1.3625

Euro                1.4700-1.4800

Sterling           1.7200-1.7300

WTI Oil (opening level) $78.79

The US Dollar is marginally weaker in a quiet overnight session, the US market will be awaiting Fed Chair Powell's testimony to Congress on the state of the economy. I would imagine the committee will be grilling him on why interest rates have not started to fall but I get the sense that he will be able to stand his ground until inflation shows signs of hitting the 2% level. If he gives any hints as to when the Fed thinks the first interest rate cut will come then you will see some fireworks in the market.

The Canadian Dollar is marginally weaker as this morning we get the Bank of Canada interest rate announcement. I get a sense that it will be a non-event as it will be more of the same rhetoric that we have seen in the past, nothing happening with interest rates until there is a clear path to a 2% inflation rate.

The market should remain quiet today unless we get some definite news from Powell on interest rate cuts and then we will see lots of volatility.