The GBP was affected by another interest rate hike which is hurting the UK economy

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

US Dollar         1.3250-1.3350

Euro                 1.4500-1.4600

Sterling            1.6900-1.7000

WTI Oil (opening level) $81.03

The US Dollar index is marginally stronger to start the month of August, it picked up its biggest gains against the British Pound as that country reported a sharp drop in housing prices in the face of another Bank of England interest rate hike this week. GBP.USD fell from a high of 1.2860 to trade at 1.2785 this morning as it is clear that unlike the US higher interest rates are hurting the UK economy. The Greenback is also getting some help from a growing slowdown in the Chinese economy a situation that always makes investors nervous.

The Canadian Dollar is weaker with USD.CAD moving to the top end of the range at 1.3280 (0.7530) so once again the Loonie was not able to extend its gains from last week. On the positive side the Loonie was able to pick up some strength against the weaker Pound so not a complete drop for the Loonie

After a strong finish to the month stocks are pointing a little lower to start the month, I am reading that a lot of investors feel the rally in stocks will continue as long as the economy avoids a recession.