American dollar loses momentum as the Federal Reserve is being unclear about further rate hikes

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

US Dollar             1.3350-1.3450

Euro                     1.3700-1.3800

Sterling                1.5900-1.6000

WTI Oil (opening level) $81.20

The US Dollar index is marginally weaker this morning in again what was a fairly subdued overnight market. The Dollar strength was put on hold as a Federal Reserve committee member said in a speech yesterday that there is room for the Fed to start reducing the pace of their interest rate hikes as soon as next month. This is the view of only one Fed committee member but it shows just how reactive the currency market is to any comments from Fed officials on interest rates, I still think we will see another 0.75% interest rate hike next month from the Fed and then they will slow the pace of hikes going into next year.

The Canadian Dollar was able to extend some gains overnight as USD.CAD dropped to trade at 1.3400 (0.7463) down from a high of 1.3490 (0.7413) early yesterday. We do get the Canadian October Retail Sales report today which is forecast to have dropped 0.5% since September so that will start to confirm that the Canadian economy is heading to a recession early next year and which may start to push USD.CAD back towards 1.3500 (0.7407) later in the week.

Stocks are pointing higher to open the day and we may have some volatility as there are a few US Federal Reserve members giving speeches today, for the most part currencies should remain in relative ranges as the US markets gets ready for the thanksgiving holiday.