The Bank of Japan might be set to exit from decades of ultra-low interest rates

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) $70.21

The US Dollar index is marginally weaker this morning as the currency market reacted to news out of Japan where that country's Central Bank Governor made off-hand comments that the era of ultra-low interest rates in that country may be coming to an end. USD.JPY fell from a high overnight of 147.40 to trade a low as 144.70 so a big jump for the Yen and a big drop for the Greenback. Focus for the Dollar will now shift to tomorrow's November Employment report where it is expected that the US economy has continued to create jobs but at a slowing pace.

The Canadian Dollar is marginally weaker this morning as it continues to range trade, yesterday saw the Bank of Canada as expected keep their key interest rate at 5% and make the statement that while they see prices starting to moderate, they are prepared to increase rates again should the need arise. From everything I have read I get the sense that most market watchers feel the Bank is finished with rate hikes and will be among the first Western Central Banks to cut interest rates next year. This factor and commodity prices that continue to fall (including oil) will continue to be a drag on the Loonie in the short-term.

A quiet day on the calendar today with only some Bank of Canada speakers talking about yesterday's announcement, stocks had another down day yesterday and are poised to open the day in negative territory so the US Dollar will most likely remain supported ahead of tomorrow's employment report.