Canadian dollar holds well against the USD, extends gains against other currencies

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

US Dollar             1.2950-1.3050

Euro                     1.2850-1.2950

Sterling                1.5250-1.5350

WTI Oil (opening level) $94.60

The US Dollar index is marginally stronger this morning after a down day yesterday where some negative US secondary data including a drop in new home sales helped to push the Greenback lower. This morning it was once again a weaker Euro that helped the Dollar recover as energy prices again jumped in Europe as the common area faces a very tough few months when the weather gets colder. EUR.USD fell to an almost 20-year low at one point yesterday to trade near 0.9900 and EUR.CAD trades near 1.2900 which is again a multi-year low.

The Canadian Dollar is holding in quite well against the Dollar at the moment as USD.CAD hovers once again near the 1.3000 (0.7692) level and it continues to make gains against the other currencies. The Loonie has been helped by a small jump in commodity polices over the last couple of days so if that continues it may once again repel the 1.3000 level and trade lower in the short-term.

For today stocks are again pointing lower on the opening as markets get set for Powell's speech on Friday, ahead of that we get the US Durable Goods report for July today which if it disappoints may push stocks again lower and the Dollar may benefit.