USD index remains supported ahead of the tomorrow's FED meeting

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

US Dollar             1.3250-1.3350

Euro                     1.3250-1.3350

Sterling                1.5150-1.5250

WTI Oil (opening level) $85.40

The US Dollar index remains supported ahead of the Federal Reserve interest rate announcement tomorrow. This morning the Swedish Riksbank raised the Swedish lending rate by 100 basis points so the week has started with aggressive rate hikes, after the Fed tomorrow The Bank of England and the Swiss National Bank make their announcements and they are all expected to be "super-sized" increases which will keep the currency markets busy.

The USD.CAD rate continues to hover near the 1.3300 (0.7519) level as the market awaits the Canadian Inflation report for August. The market is expecting a slight drop in the inflation rate to 7.3% (down form 7.6%) which may give the Loonie a little support if it comes in as expected.

Stocks are again pointing lower on the opening this morning, the Dollar should remain supported until we hear from the Fed tomorrow afternoon but stocks will continue to trade with weakness ahead of that announcement.