Loonie Slips Before Key Inflation Report
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3690-1.3940
Euro 1.6010-1.6260
Sterling 1.8550-1.8800
WTI Oil (opening level) $62.61
The CAD/USD is opening at 1.3806 ( 0.7243 )
CAD surrenders all of its intraday gains against the USD on Monday, as the USD staged a modest recovery. Market participants refrain from placing aggressive bets ahead of Canada’s July Consumer Price Index release due this morning, which could offer fresh cues on the Bank of Canada's policy.
Headlines
· The annual Economic Policy Symposium will kick off Thursday evening in Jackson Hole, Wyoming, where Chair Jerome Powell on Friday is expected to unveil the Fed's new policy framework. Powell's speech could give Fed watchers a fresh update on how much support there is to lower rates in September, as policymakers have become divided on when to resume rate cuts.
· Trump administration is reportedly considering taking a 10% stake in Intel, potentially making the US government its largest shareholder. This may involve converting CHIPS Act grants, totalling $10.9 billion, into equity, according to Bloomberg News.
· The US Housing Market Index fell to 32 in August 2025 from 33 in July, below the forecast of 34. Current sales conditions dropped to 35, future sales held at 43, and buyer traffic rose to 22. Builder price cuts slightly decreased to 37% from 38% in July.
· Trump called Vladimir putin to urge him to accept a trilateral gathering, potentially within two weeks, with Zelenskiy saying a bilateral gathering should not carry any conditions and that he would be willing to discuss territorial issues, and that he was pleased Trump had agreed to participate in security guarantees as part of any peace deal.
Key Points
· Equities: Wall Street flat as retailers and Jackson Hole loom; Europe steady with renewables and healthcare strong; Asia mixed with Nikkei at record and Hong Kong weaker; UK modestly higher on defensives.
· Volatility: VIX near 15 with a mild upward curve; options imply a daily S&P 500 swing of about 61 points, or 0.9%.
· Fixed Income:
· Digital Assets: Bitcoin slipped to $116,290 (−1.0%) and Ethereum to $4,310 (−3.6%); US spot BTC ETFs saw $68.7m net outflows led by IBIT and ARKB.
· Currencies: Tight ranges in FX after USD firmed a bit yesterday and overnight. NZD awaits RBNZ
· Commodities: Summer lull keeps key commodities locked in tight ranges
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Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2500-1.2600
Euro 1.4700-1.4800
Sterling 1.7350-1.7450
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2900-1.3000
Euro 1.3500-1.3600
Sterling 1.5600-1.5700
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3800-1.4050
Euro 1.6220-1.6470
Sterling 1.8580-1.8830



