Canadian Dollar takes advantage of the weaker USD index

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

US Dollar             1.2550-1.2650

Euro                     1.4850-1.4950

Sterling                1.7300-1.7400

The US Dollar Index is again marginally weaker this morning as the Greenback continues to trade with a weak bias after Fed Chair Powell's speech last Friday where he said the Fed is considering slowing their stimulus plan later this year. Key to what the Federal Reserve will do comes from the employment numbers this Friday, if the August numbers show strong growth, then you could see the Fed move quicker than previously thought and if they are weaker then the market was expecting they may sit on the sidelines a little further. Strong job growth will be the key to any future policy change.

The Canadian Dollar has been able to pickup some small gains against the US Dollar but remains flat against the other currencies. USD.CAD opens the day at the 1.2580 (0.7949) level which is the currency pair lowest level in a few days. Up today we get the Canadian GDP report for the 2nd quarter and the market is expecting a growth rate of 2.5% which is considerably lower than the first quarter growth rate of 5.6%. A strong showing by the economy should be enough to help USD.CAD fall towards the 1.2500 level today.