Canadian dollar lost some ground to the major currencies

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

US Dollar             1.3650-1.3750

Euro                     1.3150-1.3250

Sterling                1.4800-1.4900

WTI Oil (opening level) $82.00

The US Dollar index is again higher this morning but that was after it weakened yesterday in response to a strong day on the world's stock markets and an intervention into the UK Bond markets by the Bank of England to counter the negative effects of the governments tax cutting plan. The plan by new Prime Minister Truss to cut taxes and increase spending is attracting global criticism from other world leaders and central bankers as other countries cut spending and increase interest rates to try and slow the rise in inflation. Sterling had been in freefall until yesterday morning when the BOE intervened to buy UK Gilts bonds to slow the dramatic fall in the UK market, once the BOE left the market Sterling has started to fall again and will continue to trade with a weak bias.

The Canadian Dollar picked up a little strength against the US Dollar yesterday and opens the day at the 1.3700 (0.7299) level but did lose some ground to the stronger currencies. We may see some movement in the Loonie today as the GDP report for July will show a slowing economy moving towards a recession, a number worse than market expectation could easily push USD.CAD back over the 1.3750 (0.7273) level.

Global stocks were all lower last night and it looks like North American stocks will not be able to put two strong days in a row together, the Dow Jones is pointing some 250 points lower on the opening so it may quickly wipe out yesterday's 500+ gain and help the US Dollar recover and trade stronger throughout the day.