USD loses some strength as stocks start the month on a positive note

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

US Dollar             1.3700-1.3800

Euro                     1.3400-1.3500

Sterling                1.5350-1.5450

WTI Oil (opening level) $83.00

The US Dollar index is marginally weaker this morning as the markets begin the month of October which has historically been a crushing month for financial markets. The Dollar was led lower by a stronger British Pound as Prime Minister Truss reversed her plan for tax cuts to the UK's highest earners, GBP.USD jumped from a low of 1.1100 to trade at 1.1265 before falling back this morning, GBP.CAD rose from 1.5280 to trade at 1.5470 before pulling back a little. I am not sure this move will be enough to save the Pound in the long run but for know it has stemmed its losses.

The Canadian Dollar has picked up some gains against the US Dollar overnight with USD.CAD falling to open the month at the 1.3750 (0.7273) level, it has lost significant ground to the other currencies over the last couple of days so a tough start to the month for the Loonie.

Last week I talked about global intervention by the world's Central Bankers to stem the tide of the rise in the US Dollar and this morning Bloomberg published a report that most economists expect the US Dollar to continue to rise over the next quarter but they also expect some form of intervention to stem the rise of the Dollar. It will be interesting to see how it all plays out.

Stocks are pointing higher to start the day after another tough day to end the month on Friday, the highlight on the calendar this week will be the US and Canadian Employment reports for September. There are reports of further Ukrainian advances in the war, this time in the South where the war had been at a stalemate until now. Putin has backed himself into a corner and if Russia continues to lose ground what happens next will be a major concern for financial markets going forward.