USD Weakens Amid Strong Euro and Pound, CAD Faces Challenges Despite USD Decline

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

US Dollar        1.3550-1.3650

Euro                 1.5100-1.5200

Sterling            1.7800-1.7900

WTI Oil (opening level) $72.17

The US Dollar index is again marginally weaker this morning as both the Euro and Pound are maintaining recent one-year highs against the Greenback. Strong data out of Europe and Fed minutes yesterday that implied a rate cut is coming in September continue to push the US Dollar lower and will continue to do so as the market awaits Powell's speech tomorrow.

The Canadian Dollar continues to hold onto its recent strength but it certainly did not move higher like the Euro and Pound did overnight. Both GBP.CAD and EUR.CAD moved significantly higher which still tells me that the Loonie will still have a tough time to make significant gains against the US Dollar in the short-term despite weakness in the Greenback.

Stocks moved higher again yesterday and overall are pointing higher on the opening this morning, the Canadian market may face some headwinds today as TD indicated that they are putting some $2.6 billion aside to cover fines from a money laundering conviction in the US and it was announced overnight that both CN and CP have locked out their employees which could affect supply chain issues here in Canada damaging a very fragile economic recovery.