Quiet Start to Week: US Dollar Marginally Weaker, Sterling Surges on UK Growth, Canadian Dollar Steady

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

US Dollar        1.3650-1.3750

Euro                 1.4700-1.4800

Sterling            1.7100-1.7200

WTI Oil (opening level) $78.14

The US Dollar index is marginally weaker this morning in what was a very quiet session to start the week, I would expect this trend to continue until we hear the US inflation report on Wednesday. More about this later in the week but markets are almost singularly focused on when the Federal Reserve will cut interest rates and if inflation remains strong then the likelihood of an interest rate cut this year should fade.

Sterling was the big mover overnight as the UK economy grew by the most it had in three years in the first quarter. With the economy growing it is now expected that the Bank of England can hold off on interest rate cuts for the time being which should help to give some further strength to the Pound.

The Canadian Dollar continues to range trade and in fact I did not have to make any changes to the expected ranges this morning. USD.CAD trades near the 1.3675 (0.7313) level and should remain steady ahead of the US inflation report.

Nothing of note on the calendar with the exception of a couple of Federal Reserve member speeches. After a great week last week stocks traded higher overnight and the North American stocks are set for for a flat opening but should have a positive quiet day.