Japanese Yen falls to a 24-year low against the USD

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

US Dollar             1.3750-1.3850

Euro                     1.3300-1.3400

Sterling                1.5200-1.5300

WTI Oil (opening level) $89.60

The US Dollar index remains supported (it reached a 24-year high yesterday) as the Japanese Yen has weakened off once again to levels beyond where the Bank of Japan last intervened in the currency markets to support the Yen. In the UK, the Dollar continues to get a boost from the government policies that are sowing confusion in the financial markets and causing increased volatility in Pound's value. The Bank of England has publicly said they will stop buying UK government bonds on Friday but privately seem to be saying that they will continue on with their purchases, either way the Pound will remain vulnerable and give further support to the Greenback.

In an interview yesterday Treasury Secretary Yellen did not seem to be too concerned with the value of the US Dollar and indicated that if there is a recession in the US it will be a slight one. It may be some time before the world's Central Banks provide coordinated intervention to stop the growth of the US Dollar.

The Canadian Dollar has a quiet overnight session with USD.CAD trading near the 1.3800 (0.7246) level and it did once again pick up some small gains against the other currencies but for the most part the Loonie will still trade at the mercy of the US Dollar.

Stocks had a positive day yesterday after 5 straight down sessions and they are pointing a little higher this morning, markets will be looking to the minutes from the last Fed meeting scheduled to be released this afternoon to see if there is any momentum building to reduce the pace of interest rate hikes into next year. They will also be looking at the Chinese economy to see how the chance of a further global recession come about as that country announced more COVID lockdowns going forward.