USD index depreciates as investors return to the European stock market

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

US Dollar             1.3400-1.3500

Euro                     1.3400-1.3500

Sterling                1.5400-1.5500

WTI Oil (opening level) $93.00

The US Dollar index is weaker this morning as both the Euro and Pound moved higher overnight with investors moving back into European stocks and pushing those markets higher. North American markets are now awaiting the results of the US mid-term elections to be held tomorrow, it is expected that if the Republicans win control of the Senate and House of Representatives then the Dollar will trade weaker and stocks will rise, if the Democrats retain control, then the Dollar should jump and Stocks retreat.

The Canadian Dollar was able to make some strong gains after the exceptional jobs report on Friday that showed over 100K new jobs were created last month. USD.CAD fell from a pre-report high of 1.3740 (0.7278) to trade this morning at 1.3475 (0.7421) which is its best level in over a month. This jobs report should give the Bank of Canada room to continue to announce oversized interest rate hikes in the coming months to try and tame inflation, so far their program has met with mixed results but they will continue down this path which should support the Canadian Dollar especially if the Fed starts to reduce the size of their interest rate hikes.

Nothing of note on the calendar until Thursday when we get the US inflation report for October, stocks are pointing higher to start the day but overall markets should be quiet ahead of tomorrow's elections.