British Pound loses some ground to major currencies

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

US Dollar             1.3350-1.3450

Euro                     1.4500-1.4600

Sterling                1.6400-1.6500

WTI Oil (opening level) $81.75

The US Dollar Index is mixed this morning as it is a little weaker against the Euro (which keeps rising on expectations for higher interest rates) and a lot stronger against the Pound which was hit by a poorer than expected survey of private sector economic activity, which can be seen as an early indicator of a recession in the UK.

The Canadian Dollar is also mixed, USD.CAD opens the day near the 1.3375 (0.7477) level which is a little higher than yesterday's lows near 1.3350 (0.7491). The Loonie was able to pick up some significant gains against the Pound overnight with GBP.CAD dropping from a session high this morning of 1.6570 to open the day in North America near 1.6440 so quite a drop for the Pound. Anyone looking to buy some Pounds may want to take advantage of this move.

With nothing of note on the calendar today the currency market should again remain range bound, the Canadian market will wait until tomorrow to see what the Bank of Canada has to say on interest rates and our overall economy.