American dollar remains supported as US top CEOs predict hard recession in 2023

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

US Dollar             1.3600-1.3700

Euro                     1.4325-1.4425

Sterling                1.6600-1.6700

WTI Oil (opening level) $74.95

The US Dollar index is for the most part unchanged in a quiet overnight market despite the fact that more and more US Financial companies are calling for a "mild to hard recession" next year and stating that the Fed has gone to far in fighting inflation with higher interest rates. Both the CEO's of Goldman Sachs and Morgan Stanley stated yesterday that they see the US economy slowing next year in the face of higher interest rates. The Fed has stated that they could see a mild recession next year but at the moment growth and employment say otherwise.

The Canadian Dollar was again unable to take advantage of the mildly weaker US Dollar as USD.CAD peaked at 1.3700 (0.7299) before falling a little to start today at the 1.3650 (0.7326) level. The eyes of the financial market will be on the Bank of Canada today as they will raise interest rates another 0.50% to continue their fight against inflation, Canadian Dollar traders will be more interested in what their statement says about future interest rate hikes next year. Look for a very volatile morning if they shake things up.

After a tough day on the equity markets yesterday stocks are again pointing lower on the opening, the Euphoria from the Fed saying they would slow the pace of interest rate hikes next year seems to have worn off and the market is starting to reflect slowing economic conditions going forward. If stocks continue to fall off then the Greenback should remain supported.