Weaker Euro Boosts US Dollar as Canadian Dollar Gains vs USD

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

US Dollar        1.3500-1.3600

Euro                 1.5050-1.5150

Sterling            1.8000-1.8100

WTI Oil (opening level) $71.13

The US Dollar Index is marginally stronger to start the week as the Dollar was able to start the week stronger on the back of a weaker Euro. That economy reported some weaker than expected economic data so the Euro was off a fair bit.

Investors continue to digest the 50 basis point interest rate cut by the Fed last week, stocks continue to enjoy record setting readings and the Dollar continues it recent trend of trading lower. Most of what I read now suggest that the Fed will cut another quarter point in both November and December and then possibly a full point next year. I think they would like to see the key rate drop to near 2.50%/3.00% levels before they end the program of cuts.

The Canadian Dollar was able to extend some small gains against the US Dollar as USD.CAD fell to trade at 1.3550 this morning which is about 100 points lower from last week and it look set to test lower on the day. The Loonie did not fare as well against the other currencies as the Loonie lost some ground to Sterling and was flat against the Euro.

Another quiet day on the Calendar today but it will be a busy week to close out the month as we get GDP data from both sides of the border and some more inflation data from the US. Stocks are poised for a small jump on the opening, I get a sense that they will start to range trade a bit as they have come a long way in a short time already but overall they should remain strong and the Dollar poised for some small drops.