AI Stocks Surge, Boosting Dow Jones as US Dollar Gains on Inflation Data

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

US Dollar        1.3550-1.3650

Euro                 1.4900-1.5000

Sterling            1.7700-1.7800

WTI Oil (opening level) $67.69

The US Dollar Index is marginally stronger this morning as the August inflation report came in as expected but the Core Price data was slightly higher than expected, markets are not expecting a 0.25% interest rate cut next week so there is now less of a chance of a 0.50% cut than previously hoped for.

The Canadian Dollar is still range bound against the Greenback but USD.CAD did move a little higher overnight and now the currency pair is near the 1.3580 (0.7366) level so it has lost a little ground but overall remains stable. It did pick up some small gains against the other currencies so overall the Loonie is hanging in at the moment.

Stocks had a wild day yesterday, at one point the Dow Jones index was down over 700 points (after the inflation report) and it battled back to close higher by 200 points at the end of the day, it was led higher by a big jump in tech stocks as the demand for AI stocks continues to grow. The market gets some further inflation data today out of the US in the form of Producer Price index, I think only a big jump in prices would move the needle on the Dollar so I still expect the currency markets should remain stable ahead of next week's Fed announcement.