Newly received economic data and first presidential debate results impact the US Dollar index

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

US Dollar         1.3325-1.3425

Euro                 1.5625-1.5725

Sterling            1.7100-1.7200

The US Dollar index is marginally higher this morning as the markets react to better than expected economic data and the debacle that was the US Presidential debate. In China the most recent Purchasing Managers Index showed the Chinese economy was indeed rebounding from the virus (if Chinese data is to be believed) which helped push Asian stock markets higher in early overnight trading.

What to say about the debate, I held firm to my statement that I would not watch it as it would be a gong show and from what I have read I was right. It looks like the stock markets are very concerned about the election outcome especially the comments that Trump will not accept the results which have riled the European and American stock markets and moved them all lower, the Dow Jones is pointing almost 200 points lower on the opening and my concern would be that we will be in for another terrible October which will push the US Dollar much higher ahead of the election.

The Canadian Dollar is hanging in but still looks very vulnerable at the moment, USD.CAD traded as high as 1.3416 (0.7454) overnight before pulling back to open the day at 1.3370 (0.7479). The oil price is down on the stock market sell off so if this continues into the new month I don't see how USD.CAD will stay below the 1.3400 (0.7463) for very long.

We do get the final US GDP report for the 2nd quarter this morning and the market is expecting a drop of 31.7% which is slightly better than originally thought. We also get the Canadian GDP report for July and the market is expecting a growth rate of 3% which is down from the June report. Negative reports out of either country will help push USD.CAD much higher throughout the day.