Japanese Yen hits 11-month low against the Greenback

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

US Dollar        1.3500-1.3600

Euro                1.4250-1.4350

Sterling           1.6400-1.6500

WTI Oil (opening level) $91.91

The US Dollar index is marginally stronger this morning while both the Euro and Pound continue to sell-off. With higher interest rates in the US still expected in the face of a robust economy and interest rate pauses expected in Europe and the UK in the face of slowing economies the Greenback should continue to make gains against those currencies over the short-term. The other interesting currency at the moment is the Japanese Yen which continues to trader weaker against the US Dollar and may lead the Bank of Japan to intervene in the FX Markets over the next few weeks. If they do intervene it may push the US Dollar lower for a while but any moves will be short-lived as generally central bank intervention is rarely effective for the long-term.

The Canadian Dollar again lost ground to the stronger US Dollar overnight with USD.CAD trading back up near 1.3525 (0.7394) and as we have seen over the past couple of days the Loonie has picked up some gains against the other currencies so as long as the US Dollar remains supported the Loonie will suffer.

Up today we get a gauge of the US economy with the release of the Durable Goods report, after that we get the US and Canadian GDP reports on Thursday and Friday which will help to give the FX markets some direction. After a tough day yesterday, stocks are pointing higher on the opening today so the US Dollar may give back some small gains as the stock market awaits word on the economy later in the week.