Canadian dollar pulls back some losses against the USD

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

US Dollar             1.2950-1.3050

Euro                     1.3200-1.3300

Sterling                1.5500-1.5600

WTI Oil (opening level) $100.25 (Down over $8)

The US Dollar Index is marginally weaker this morning as stocks finished in positive territory yesterday and both the Euro and Pound rebounded off of multi-year lows overnight. In the UK, the Pound actually rebounded when it was announced that Johnson would succumb to the enormous pressure and resign when a new Conservative leader is chosen in the fall.

The minutes of the last Federal Reserve meeting where released yesterday and they confirmed the fact that the Fed will prioritize their fight against inflation with higher interest rates at the expense of economic growth. Markets will react to any signs that the US economy is slowing and we may get a first look at this tomorrow when we see the June Employment numbers. Employment is expected to remain strong in the short-term but if layoffs start to rise then we will see stocks continue to fall off and the Dollar move higher on the safe haven effect.

The Canadian Dollar was able to pull back some losses overnight and USD.CAD opens the day back below the 1.3000 (0.7692) level and it was also able to hold onto gains against the other currencies. We also get the Canadian Employment numbers tomorrow but for the most part the Canadian market will be waiting on the Bank of Canada next week.

Stocks are pointing a little higher on the opening and with only some trade data on tap for today the Loonie should have a positive day as the market awaits the numbers tomorrow.

The commentary will be very limited over the next few weeks as Mrs. Smith and I are boarding a plane for the first time since 2020 and heading over to Ireland and Scotland for a holiday. I will try and do a few updates over that time when I have access to a computer.