Brexit negotiations led to a big jump in the British Pound and the Euro

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

US Dollar         1.3300-1.3400

Euro                 1.5550-1.5650

Sterling            1.7200-1.7300

The US Dollar index is weaker this morning as the Greenback was led lower overnight by a big jump in the British Pound and the Euro as there was much optimism that this week's Brexit negotiations would lead to a breakthrough on a potential deal. GBP.USD jumped from a low of 1.2750 to trade as high as 1.2910. The Euro did not fare as well as the Pound but EURO.USD jumped about 50 points overnight so all-in-all a strong start to the week for Europe.

The Canadian Dollar is marginally stronger as it was able to pull back some of last week's losses against the US Dollar and considering the overnight moves by the Euro and Pound the Loonie has held in quite well against Europe. USD.CAD opens the week at 1.3370 (0.7479) after reaching an overnight high of 1.3405 (0.7460), if the Greenback remains weak to end September we will see USD.CAD move back below the 1.3300 (0.7519) level at some point.

It is a busy week on the economic calendar to end September and start October, we get the first Presidential debate on Tuesday followed by GDP reports out of both Canada and the US on Wednesday, to start the month of October we get the US Employment report for September. USD.CAD will continue to react to events South of the border but if the US Dollar remains weak then we should see the Loonie recover a little this week.