Credit ratings agency Moody’s cuts China's sovereign credit outlook to negative

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

US Dollar        1.3550-1.3650

Euro                1.4675-1.4775

Sterling           1.7100-1.7200

WTI Oil (opening level) $72.72

The US Dollar index is marginally stronger this morning as the markets reacted to the overnight news that Moody's has downgraded the sovereign of China to negative from stable. Moody's has cited the nations rising debt and tough property market as drags on the economy. Stocks and commodity prices all fell on the downgrade and the Dollar rebounded a little, markets will watch how the Chinese economy performs in the coming months to get a better picture of what is going on.

Not much overnight activity for the Loonie, it did lose some ground to the US Dollar with USD.CAD reaching 1.3590 (0.7358) but was able to hold onto its strength against the other currencies.

Stocks are pointing lower to start the day so the Dollar may pick up some early gains, the overnight Chinese news will worry investors on this side of the world and we may see the big stock rally of the last few weeks come to a slow end. If Stocks do drop off then the Greenback should be able to go on a bit of a run and pick up some strength.