It is supposed that the Greenback will take advantage if stocks continue to decrease

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

US Dollar         1.3350-1.3450

Euro                 1.4700-1.4800

Sterling            1.7150-1.7250

WTI Oil (opening level) $80.86

The US Dollar index is marginally weaker as signs of weakness in the Chinese economy and rising US bond yields have spooked investors into selling off stocks and creating uncertainty in the market. Even though there is uncertainty in the market at the moment I think the Dollar will ultimately continue to benefit if stocks continue to fall off.

The Canadian Dollar has had a couple of up and down days, despite the resurgence of inflation in the country the Loonie has had trouble extending any significant gains. With inflation backup to 3.3% last month there is a real possibility that the Bank of Canada will increase interest rates again in September which would help to push the country into a recession, USD.CAD continues to trade between 1.3450 and 1.3500 for the moment but a break higher could be on the cards.

Markets today will be watching the minutes from the last Federal Reserve meeting to get any hints on the likelihood of the Fed increasing interest rates again before the end of the year, tt is very likely that the Fed will cut interest rates next year but there may be one or even two hikes before then. Stocks at the moment are pointing lower on the opening so look for the US Dollar to remain supported.