American dollar gets volatile as investors digest the U.S. inflation report

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

US Dollar             1.3500-1.3600

Euro                     1.3425-1.3525

Sterling                1.5550-1.5650

WTI Oil (opening level) $85.60

The US Dollar index is marginally higher this morning as the markets are awaiting the US Inflation report for October. It is expected that inflation will have moderated a little last month to come in at 8% down from 8.2% the previous month, the big fear for markets is that the Fed action on interest rates does not have the desired effect on inflation and it becomes entrenched in the economy.

Stocks had a tough day yesterday in anticipation of the report today but also on the back of what looks like a fairly big potential bankruptcy in the Crypto Currency market costing investors billions of dollars which could help to drag stocks lower over the coming days.

The Canadian Dollar lost a little ground yesterday and USD.CAD opens the day higher near the 1.3525 (0.7394) level, it looks like it has bounced off its lows from yesterday and where it goes today will depend on the US Inflation report.

Stocks are pointing higher to start the session, if the inflation report shows an increase in inflation, then look for stocks to get hit hard and the Dollar to soar and if inflation is lower than expected look for stocks to jump higher and the Dollar take a bit of a hit.