Due to the fiscal problems, there is an extremely hard time for the US economy

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

US Dollar        1.3650-1.3750

Euro                1.4350-1.4450

Sterling           1.6500-1.6600

WTI Oil (opening level) $87.63

The US Dollar index is marginally weaker this morning and interest rates continue to rise as the US political system was thrown into chaos yesterday with the ousting of McCarthy as Speak of the House of Representatives. US 5-year interest rates jumped over the 5% level yesterday for the first time since 2007 as the worry for markets now is that if these levels stick around for a longer period of time, they will push the US economy into a recession. With the closing of the House for a week and surely a very contentious election for a new speaker coming up there is now almost a 100% likelihood that the government will shutdown in November which will again push stocks lower, interest rates and the US Dollar higher. The US is a complete mess and it will hurt us all.

The Canadian Dollar lost more ground as USD.CAD hit a high near 1.3730 (0.7283) before pulling back a little this morning, given the current situation with stock prices it is not surprising that the oil price had a big drop that hurt the Loonie. Our Dollar also lost a little ground to the other currencies so clearly the Loonie is still prone to weakness as the markets struggle.

We have a few US secondary economic reports on the calendar today and stocks are pointing higher to start the day but I get the sense that they will be in the red by the end of the day. The US Dollar will remain supported throughout the week and US Bond yields are sure to keep rising in the current environment.