Chinese stock market falls as the government imposes new trading regulations

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

US Dollar         1.2525-1.2625

Euro                 1.4800-1.4900

Sterling            1.7300-1.7400

The US Dollar Index is stable at the moment as the US Federal Reserve begins their two-day meeting to discuss their interest rate and stimulus programs. The biggest news at the moment is the big drop in the Chinese stock market in reaction to changes in regulations around the trading of Chinese tech stocks announced on the weekend by the Government, it certainly looks at the moment that Western investors are leaving that market which had been very profitable to them over the last few years in droves. Currently this move is not having much effect on the Dollar but USD.CNY has dropped a little over the last 24 hours.

The Canadian Dollar remains stable and trading in a tight range (1.2500-1.2600) as it awaits its next move most likely to come after tomorrow's report from the US Central Bank. Ahead of that announcement tomorrow afternoon I would not expect much action for the Loonie.

Up today we get the US Durable goods report which is expected to show a small decline in US manufacturing, I doubt it will move the market very much as most traders will be getting their positions in order for tomorrow's report.