US Dollar steady as traders eye inflation reports and Fed speeches while Canadian Dollar awaits key data

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

US Dollar        1.3600-1.3700

Euro                1.4750-1.4850

Sterling           1.7300-1.7400

WTI Oil (opening level) $78.02

The US Dollar index is for the most part unchanged this morning as it is range trading in a narrow band just as the Canadian markets plays catch-up after yesterday's holiday. Most traders seem content that inflation in the US looks like it is moderating albeit at a slow pace but still remain unsure of when the Fed will announce their first interest rate cut.

The Canadian Dollar also still continues to range trade but that may change today as we get the latest inflation report for April. The market is expecting that the year-over-year inflation rate fell to 2.7% from 2.9% but more importantly the Core prices inflation rate is expected to hold steady at 2%. If these numbers hold steady it is not unreasonable to expect the Bank of Canada to announce an interest rate cut in either June or July, a scenario which would push the Loonie lower.

Stocks are pointing to a flat opening after a down day yesterday, The TSX should trade lower as it plays catch-up. The US has a slew of Fed official speakers today so the US Dollar should remain steady as traders pay attention to what they are saying and look for any hints as to what will happen in the coming weeks.