US Dollar Weakens Ahead of Fed Decision and Inflation Report; Euro and CAD Steady

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

US Dollar        1.3700-1.3800

Euro                 1.4750-1.4850

Sterling            1.7500-1.7600

WTI Oil (opening level) $77.05

The US Dollar index is marginally weaker this morning as traders get set for the double whammy of the US May Inflation report and the latest interest rate announcement from the Federal Reserve. The Inflation report is expected to show that inflation moderated a little last month with the Core year-over-year rate falling to 3.5% from 3.6% and the regular rate remaining flat at 3.4%. While improving, these numbers still remain above the 2% Fed target rate so there is little chance of an interest rate cut today. Of more importance today will be the Fed statement on how they see the rest of the year unfolding, right now the market is betting on only one cut this year so we will see how that plays out.

The Euro remains under pressure as French President Macron is set to address the nation this evening on why he called the election and his vision for the country going forward.

The Canadian Dollar is also flat today as USD.CAD opens the day near the 1.3750 (0.7273) level and its movement today will totally depend on what happens South of the border