The European economy appears to be slowing faster than other Western economies

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

US Dollar        1.3550-1.3650

Euro                1.4600-1.4700

Sterling           1.7050-1.7150

WTI Oil (opening level) $71.68

The US Dollar index is again marginally stronger this morning as it continues to reverse the trend where it fell 3% in November. This morning it picked up some strength against the Euro as the common currency fell back on reports that EU Factory Orders in October came in much lower than expectation. The EU economy appears to be slowing faster than other Western economies and as such it may be the ECB that first cuts interest rates next year which will leave the Euro trading with a weak bias over the next few months.

The Canadian Dollar opens the day flat against the US Dollar but with the weakness in the Euro it was able to pick up some gains against the other currencies so overall a good start to the day. The Loonie will be front and centre today as we get the latest Bank of Canada interest rate decision and while it is expected that the Bank will not change the level of interest rates the market will be looking for any indication of when the BOC will start to cut rates in 2024. With the Canadian economy slowing considerably it is expected that the BOC will cut interest rates well before the US Federal Reserve does which will lead the Loonie to trade with a weak bias.

After a couple of down days stocks are pointing to a small gain on the opening, if they hold onto those gains then we should see the Greenback give back a little strength throughout the day.