September turned out to be the worst month for the stock market since March 2020

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

US Dollar             1.2625-1.2725

Euro                     1.4650-1.4750

Sterling                1.7100-1.7200

The US Dollar Index is marginally higher this morning in a relatively calm end to the month of September. Stocks suffered again yesterday helping to give support to the Greenback, in September the stock market suffered its worst month since March of 2020 with the S&P index losing 5% during the month. Traditionally October has been a tough month for stocks, this October is not showing signs of getting better as investors will await word that the Federal Reserve will start to cutback their stimulus program with the plan to increase interest rates next year. This scenario will continue to push the US Dollar higher.

The Canadian Dollar was able to pull back some losses yesterday with USD.CAD opening the day below the 1.2700 (0.7874) level, the Loonie was also able to pick up some small gains against the Euro but lost a little ground to Sterling which was higher overnight. Up today we get the Canadian GDP report for July and the market is expecting to show a small decline in economic activity so early on we could see the Loonie give back those gains from yesterday.

We also get some secondary US data starting the month off which will add to market activity. Either way we should still see more of the same, volatile stock markets and pressure for the US Dollar to continue to rise.