US Dollar Slightly Up, Pound Struggles: Fed Comments and BOE Decision in Focus

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

US Dollar        1.3700-1.3800

Euro                 1.4700-1.4800

Sterling            1.7050-1.7150

WTI Oil (opening level) $79.22

The US Dollar index is marginally higher this morning as the currency market continues to react to comments from various Fed officials yesterday that rate cuts are not a certainty this year in light of a stubborn inflation rate. The Dollar this morning made its biggest moves against the British Pound as the Bank of England as expected announced no change to their key interest rate citing stubborn inflation. GBP.USD fell from an overnight high of 1.2590 to trade as low as 1.2460 this morning so overall a tough 24 hours for the Pound.

The Canadian Dollar continues to range trade against the Greenback but it did lose some ground over the last day as USD.CAD moved back above the 1.3750 (0.7273) level. The Loonie was able to pick up some gains against the Pound overnight with GBP.CAD falling to trade at 1.7100 at one point so not a complete tough session for the Loonie. Tomorrow we get a further look into the state of our economy and the Loonie will be front and centre as we get the April Employment report so we should see some more volatility over the next few hours.

Nothing of note on the calendar today, after a positive day yesterday stocks are poised for a negative opening which should keep the US Dollar trading with a strong bias.