Canadian dollar holding on higher oil, Fed outlook          

Key Movers

The USD is holding steady at just under 102 on the index, while the Personal Consumption Expenditure (PCE) index release this morning showed further reductions in price inflation. The headline number came in 5% up year over year compared with 5.5% last month. Stripping out some of the more volatile costs, the core index was up 4.4% for the same period, down from the 4.7% we saw released in December. Futures markets right now are pointing towards a lower open after tougher trading sessions overnight.

The Euro lost some ground against the greenback in the overnight session after consumer confidence in France fell more than expected and ECB Chief LaGarde gave a speech reminding markets that further rate hikes are ahead.

The GBP/USD pair is narrowing into a tight channel, ahead of a week full of central bank announcements which could provide some volatile moves. The willingness of the BoE to be hawkish on rates with inflation still running close to 10% will be key for the Pound.