Year-End Markets Update: USD/CAD Stability as We Welcome the New Year

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

US Dollar        1.3580-1.3830

Euro                 1.5940-1.6190

Sterling            1.8300-1.8550

WTI Oil (opening level) $57.73

The CAD/USD is opening at 1.3708 ( 0.7295 )

Happy New Year!

USD/CAD continues to trade in a tight range around 1.37 amid thin trading volume.

US Dollar Index, ticks higher to 98.40, the highest level seen in a week.

USD gained sharply on Tuesday, as Federal Open Market Committee minutes of the December policy meeting showed that most officials supported the need for further interest rate cuts after the December cut if inflation starts cooling down.

The latest Consumer Price Index data showed that the headline inflation decelerated to 2.7% year-on-year (YoY) in November down from 3% in September.

CAD trades calmly on expectations that the Bank of Canada won’t cut interest rates in the near term. The expectations of the BoC leaving rates at their current levels are backed by inflation remaining steady around the 2% target in the last few months.