US Dollar Weakens on Chinese Stimulus; Loonie Holds Strong at Multi-Week High

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

US Dollar        1.3400-1.3500

Euro                 1.5000-1.5100

Sterling            1.7950-1.8050

WTI Oil (opening level) $70.55

The US Dollar Index is marginally weaker this morning as it is almost near a record low, the Dollar lost some ground overnight as the market adjusted to the massive stimulus program announced by the Chinese Government yesterday which has helped push global stocks higher. The so-called commodity currencies (AUD, NZD and CAD) have also performed well after the Chinese announcement as those particular economies are seen to do better when China is strong.

USD.CAD had fallen to trade at the 1.3415 (0.7454) level overnight before pulling back a little this morning to open the session at 1.3440 (0.7440) which is the best level for the Loonie in weeks. Once again I still think it will be hard for the Loonie to hold onto any sustained strength so US Dollar buyers should be looking at these dips as a buying opportunity.

Quiet day on the calendar today, markets will get set for some US GDP data due out tomorrow. Stocks are poised to pull back a little bit on the opening which is not a surprise considering how strong they have been these past few weeks, corrections are bound to happen.