Market Update: US Dollar Weakens Amidst Fed Rate Cut Speculation, Bitcoin Hits New Highs

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

US Dollar        1.3450-1.3550

Euro                1.4700-1.4800

Sterling           1.7300-1.7400

WTI Oil (opening level) $77.62

The US Dollar is marginally weaker this morning as the Greenback hit a two-month low over the weekend. The US Dollar has been trending lower as it continues to react to comments last week from Fed Chair Powell that interest rates cuts should be coming later in the year and an employment report while positive showed that the rate of job creation is starting to fall. The Greenback should remain under pressure ahead of tomorrow's US inflation report.

Of interest to market watchers this morning is that Bitcoin hit a new record high at $71,000 which brings the gains since the start of the year to over 70%. The creation of exchange traded funds in Bitcoin around the world have helped to create this feeding frenzy and it should continue for a while.

The Canadian Dollar is mixed this morning as it has continued to range trade against the US Dollar but lost some ground to the other currencies. Friday's employment report that showed 40K new jobs were created in February did little to support the currency as the unemployment rate went slightly higher. The Loonie will continue to have a tough time getting stronger over the coming weeks

All market eyes this week will be on the US Inflation report for February to be released tomorrow which is expected to show a small drop in the inflation rate and which should help the Fed start to move on the first interest rate cut. Stocks are pointing lower to start the day so the US Dollar should remain steady ahead of the report tomorrow.