Fresh Canadian inflation report is no surprise for investors

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

US Dollar             1.3200-1.3300

Euro                     1.3750-1.3850

Sterling                1.5750-1.5850

WTI Oil (opening level) $86.15

The US Dollar index is marginally weaker this morning but that was after it jumped higher overnight when it was reported that a Russian missile strike hit Poland. The Dollar pulled back when it was reported that it now looks like a Ukrainian defense battery deflected the Russian missile and it hit Poland by accident.

The Canadian Dollar was able to pick up some small gains against the US Dollar as USD.CAD opens the day near the 1.3250 (0.7547) level, it looks like the Loonie has settled into this most recent range and it will need a good push to bring along any further strength. As I write the Canadian Inflation report has been released and it shows that annualized inflation in October came in at 6.9% and the core inflation rate came in at 5.8%, both are pretty much bang on what the market was expecting. The Loonie is trading a bit weaker at the moment but I don't think this report will be enough to take the Loonie out of recent ranges, the Bank of Canada will continue with aggressive interest rate hikes which should continue to support the Loonie.

After a small up day yesterday, stocks are pointing lower on the opening but the US Retail Sales report for October has come in better than expected so it is likely that stocks may improve and the Dollar give back some more strength.