USD index maintains levels near its three-week high

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

US Dollar             1.2600-1.2700

Euro                     1.4875-1.4975

Sterling                1.7475-1.7575

The US Dollar Index is marginally higher this morning as the Greenback maintains levels near its three-week high. The Dollar received a boost from yesterday's retail sales report that showed a jump in consumer spending during August which came as a surprise to most economists who were expecting another drop. This positive report will give more rise for the Federal Reserve to begin cutting back their stimulus programming in the coming months.

The Canadian Dollar has managed to stay range bound in the face of the stronger US Dollar most likely due to the recent jump in the oil price which now trades at over $72 a barrel. USD.CAD opens the day at the 1.2650 (0.7905) level right in the middle of recent ranges and should remain steady for the day.

Markets will be watching the release this morning of the Consumer Sentiment report as they look for confirmation of the strong retail sales number in August. If the report shows consumers are optimistic on the pace of the recovery, then you could see the US Dollar get another small boost.