Stocks are pointing higher due to better-than-expected US banks profits

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

US Dollar        1.3600-1.3700

Euro                1.4350-1.4450

Sterling           1.6550-1.6650

WTI Oil (opening level) $86.83

The US Dollar index is marginally higher this morning as the announcement that President Biden will visit the Middle East to meet with leaders to discuss aid for Gaza and also to try and stop the conflict from spreading. Stocks also had a great day yesterday but look set for some profit taking today as North America looks like it will have a negative opening. The stock market was also pushed higher by financial stocks with US big banks reporting better than expected profits, most market experts were expecting the financial sector to report weaker numbers as they tend to struggle in high interest rate environments.

The Canadian Dollar is unchanged this morning against the US Dollar, it did lose some ground to the Euro but picked up some strength against the Pound. Once again there is nothing, I see on the horizon that would help the Loonie go on a sustained run of strength so for the moment US Dollar buyers should keep buying on any dips and US Dollar sellers continue to enjoy the ride and take the big premium.

Up today we get US Retail Sales for September, the Fed and market will be watching this number closely to get a better gauge on how the retail economy is weathering higher interest rates. The market is expecting a 0.2% growth which is down from the August number of 0.6%, any number below expectation should push the US Dollar lower.