US Dollar index remains at a high level

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

US Dollar         1.3275-1.3375

Euro                 1.5500-1.5600

Sterling            1.7250-1.7350

The US Dollar index is unchanged this morning despite a big overnight drop in Asian and European Stock Markets. The effects of yesterday's stronger than expected US 3rd Quarter GDP report have faded quickly as a group of tech giants all reported weaker than expected results yesterday and now the Dow Jones looks set to open down almost 1% which will again put pressure on the US Dollar to move higher today.

The Canadian Dollar is still weaker but it is off its worst levels from yesterday, USD.CAD opens the day at the 1.3300 (0.7519) level down from its high yesterday of 1.3380 (0.7474). Up today we get the Canadian GDP report for August which is expected to show small growth of 1% which will do nothing much to get market traders excited about owning Canadian Dollars. Given that the Bank of Canada will be keeping interest rates low until at least 2023 I still can't see a path to sustained strength in the Canadian Dollar.