Market Unease Amid Middle East Tensions; Tech Stocks Struggle Persistently

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

US Dollar        1.3675-1.3775

Euro                 1.4575-1.4675

Sterling            1.6950-1.7050

WTI Oil (opening level) $81.11

The US Dollar index is unchanged this morning as markets are enjoying the relative calm in the Middle East but they are still a little uncertain as to when the next attack will occur so remain nervous. Stocks enjoyed a strong day yesterday with the Dow Jones up over 250 points despite Tech stocks taking further losses, so far Tesla is down over 43% in the past year and Apple which has seen its iPhone sales in China plunge by almost 20% in the first quarter. We will see if the Tech meltdown carries over into the broader market and drags the Dow down with it.

The Canadian Dollar is marginally stronger this morning as USD.CAD opens the day near the 1.3700 (0.7299) level, yesterday saw some positive news on the inflation front as the Produce Price Index fell by 0.5% over the last year. This should give further evidence to the market that the Bank of Canada has room to cut interest rates next month. If the Bank does cut next month look for the loonie to trade weaker.

The Calendar is quiet today and stocks are again pointing higher so look for the US Dollar to remain supported in what should be a quiet day.