USD Slides to 7-Month Low as Market Awaits Fed's Rate Cut; CAD Strengthens on Rate Speculations

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

US Dollar        1.3600-1.3700

Euro                 1.5050-1.5150

Sterling            1.7650-1.7750

WTI Oil (opening level) $73.55

The US Dollar index is marginally weaker this morning and in fact hit close to a seven-month low as stocks continue to surge in the expectation that Fed Chair in his Jackson Hole speech this week will clear the path to an interest rate cut in September. The Dollar should remain trading with a weaker bias as the market gets closer to this decision.

The Canadian Dollar has had a great 24 hours as USD.CAD fell to trade close to the 1.3600 (0.7353) level overnight, a drop of close to 50 points in the last 24 hours. Once again nothing much has changed for the Loonie so this I think does present a short-term good opportunity for US Dollar buyers.

Up today we get the Canadian Inflation report for July and the market is expected to come in at 2.5% which would be down from the 2.7% recorded in June. If we do get a positive report then the path to another interest rate cut here in Canada should unfold and the Loonie may suffer again.

Nothing of note on the US calendar today, stocks are again poised for a flat opening but should remain strong, the Greenback should also remain under pressure until we here from Powell later in the week.