Currency Markets Weaken US Dollar Amid Strong British Pound and Japanese Yen

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

US Dollar        1.3600-1.3700

Euro                 1.4900-1.5000

Sterling            1.7750-1.7850

WTI Oil (opening level) $80.05

The US Dollar index is weaker this morning as the Greenback was pushed to multi-month lows on the back of strength in both the British Pound and Japanese Yen. In the UK the Pound rallied on the back of higher than expected inflation numbers and in Japan the Yen rallied about 200 points on further currency intervention talk by the Central Bank. With the Republican National Conventions in the news the Dollar also turned weaker as another Trump Presidency is coming into focus which will involve massive trade tariffs and big corporate tax cuts driving US deficits higher.

The Canadian Dollar continues to range trade between 1.3600 (0.7353) and 1.3700 (0.7299), the Loonie picked up some ground overnight on the back of the weaker US Dollar but that is only after it lost ground on the better than expected Canadian inflation report yesterday. The June inflation rate came in a little lower than expected at an annualized rate 2.7% which should allow the Bank of Canada room to cut interest rates once again at their July 24th meeting next week. US Dollar buyers may want to purchase some of their requirements before that meeting next week.

Stocks had a strong day yesterday but are looking at a lower opening, Trump's trade plan will be very difficult on the Tech sector as it will place high tariffs on the microchip sector so that group may be in for a tough road ahead of the elections.