Canadian Dollar holds onto its recent strength

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

US Dollar             1.2325-1.2425

Euro                     1.4300-1.4400

Sterling                1.6900-1.7000

Welcome to November! The US Dollar index is marginally stronger this morning as markets await word on Wednesday from the US Federal Reserve on interest rates. Financial markets will be looking for more information on timing of the first interest rate hike now that the Fed has started to slow its rate of stimulus to the economy.

The Canadian Dollar has held onto its recent strength and in fact I had to do very little to change the expected ranges from my update last week so the Loonie remains quite stable. The Bank of Canada announced last week that they were ending their stimulus plan and it looks like there could possible be as many as four quarter point interest rate hikes next year which would help to support the Canadian Dollar.

The price of oil remains above the $83 a barrel price but it is off its high's so the Loonie is not getting as much help from the oil price as it did in the last few weeks, we will see where energy prices go in the short-term as inflation is expected to moderate in the first few months of the year.

Nothing of note on the calendar for today, look for USD.CAD to remain range bound, markets at the moment seem to be focused on the climate change conference in Glasgow to see if anything comes out of it that could affect the markets going forward.