Market Dynamics: Fed Chair Powell's Comments Drive Dollar Weakness, Yen Strengthens, and Canadian Dollar Holds Ground

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

US Dollar        1.3475-1.3575

Euro                1.4650-1.4750

Sterling           1.7150-1.7250

WTI Oil (opening level) $78.84

The US Dollar is marginally weaker this morning as the markets reacted to the comments from Fed Chair Powell yesterday where he told Congress interest rate cuts most likely would start to happen later in the year depending on the timing of when inflation was moving to the 2% level.

In other Central Bank news overnight, the Japanese Yen jumped higher on the growing expectation that the Central Bank of Japan will soon start to increase interest rates away from their negative value and the European market is awaiting word from the ECB on what they will do with interest rates this morning.

The Canadian Dollar has been able to pick up a little strength across the board as the Bank of Canada indicated that it is still too soon to determine when they will start to cut interest rates, they too are waiting to see when inflation is set to return to the 2% level. Unfortunately, our economy is not as strong as the US economy and the results are very evident.

The Canadian market is set to release some trade data this morning and we also get further testimony from Fed Chair Powell but for the most part the market will get setup for the employment news tomorrow.