Dollar Index Holds Strong Amid Euro Weakness; Loonie Stays Flat

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

US Dollar        1.3700-1.3800

Euro                 1.4700-1.4800

Sterling            1.7400-1.7500

WTI Oil (opening level) $78.30

The US Dollar index is holding onto recent strength at the expense of the Euro as the markets get set for what should be a relatively stable week. The Greenback is holding onto the gains it made last week after French President Macron called a snap election in the face of gains made by the far right parties in the latest round of European parliamentary elections. In addition, Fed committee members are making statements that it is not unreasonable to expect only one interest rate cut in December of this year so look for the US Dollar to remain supported this week.

The Loonie opens the week flat against the US Dollar trading near the 1.3750 (0.7273) level but it was able to make some gains on Friday against both the Pound and Euro. I would expect that this pattern will play out for the Loonie for the next little while, weakness against the Dollar but some strength against the other currencies.

The calendar is full of US and Canadian secondary data this week so we will get a solid look at both economies in the coming days, stocks after a tough day on Friday are pointing lower to start the week so look for the US Dollar to hold onto its strength throughout the day.