USD index has been holding high values lately

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

US Dollar             1.2700-1.2800

Euro                     1.4700-1.4800

Sterling                1.7100-1.7200

The US Dollar Index is marginally weaker this morning but that was after a strong last couple of days that saw the Greenback soar and global stocks get hit hard. Bringing some calm to the markets was the expectation that the US Senate would today pass a new bill that will keep the government open and paying their bills until December so the can has once again been kicked down the road. The political infighting in the US continues as Biden is pushing hard to get his $500 Billion infrastructure spending plan approved but he is running into opposition from members of his own party that say the bill does not go far enough. If this plan gets shot down then look for the US Dollar to jump higher again as stocks should fall back.

In the UK the energy crisis continues with another three energy suppliers declaring bankruptcy brought on by the high cost of natural gas. The government will now surely have to step in and do something to help the industry but that may be too late for a number of companies and consumers who are paying higher prices. As we have seen in Texas earlier this year and now in the UK deregulation of the energy industry can be a very tricky proposition when things turn bad, the Pound continues to suffer on the back of these issues with GBP.USD falling to trade to 1.3420 at one point, down 130 points in a day.

The Canadian Dollar is weaker against the US Dollar this morning as USD.CAD opens the day back at the 1.2740 (0.7849) level. The Loonie was able to pick up some gains against the other currencies so yesterday it was not a completely tough day for the Loonie.

We do get the final US GDP data for the 2nd quarter today, the growth rate is pretty much locked in by now so I doubt there will be any surprises with this number for the market to look at, the Canadian Dollar should remain range bound for the day. Canadian traders will look towards tomorrow's Canadian GDP for a sense of direction from this point.