The Canadian dollar picked up some gains against the Pound and Greenback

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

US Dollar         1.3100-1.3200

Euro                 1.4700-1.4800

Sterling            1.6900-1.7000

WTI Oil (opening level) $75.59

The US Dollar index continues to trade weaker ahead of next week's US Federal Reserve expected interest rate hike. I think the markets are more concerned with what the Fed says about the need for future rate hikes than the actual one this time. If they feel that inflation is still moderating then they may hold off on another hike this year and that will take the Dollar lower.

The other mover overnight was Sterling as the Pound has reversed course with the UK economy reporting a lower inflation rate than expected so both the US and Canadian Dollars have been able to pick up some gains against the Pound.

The Canadian Dollar was able to extend some further gains against the US Dollar as USD.CAD dropped below the 1.3200 (0.7576) yesterday and moved below 1.3150 (0.7604) this morning. With further weakness predicted for the US Dollar in the short-term we could see the Loonie make further gains but as always, the questions remain are those gains sustainable in the long run?

After a strong day yesterday, stocks are pointing to another positive opening so the market is thinking that the Fed may yet pause on interest rates after next week. Look for the Canadian Dollar to hold onto its recent gains but further short-term gains may be difficult until we hear from the Fred next week.