Loonie made some gains at the start of an important week with lots of economic reports

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

US Dollar        1.3325-1.3425

Euro                1.4550-1.4650

Sterling           1.6900-1.7000

WTI Oil (opening level) $71.97

The US Dollar index is marginally weaker this morning as the market continues to react to the news from last week that the US Federal Reserve has created the possibility of as many as three interest rate cuts next year if inflation continues to come under control. I think the Greenback will continue to drop in the coming days but certainly not in a straight line like we saw last week and not without a few bumps in the road.

The Canadian Dollar has managed to hold onto its recent jump higher and looks set to make some small incremental gains this week. USD.CAD opens the week near the 1.3360 (0.7485) level and I would not be surprised if it tried to touch the 1.3300 (0.7519) level at some point, the Loonie also made some incremental gains against the other currencies overnight so overall a good start to the week. This will be an important week for the Loonie as we lead up to the Christmas holiday period, the market gets the release of lots of economic reports including inflation tomorrow and GDP and Retail Sales on Thursday, the market will get a better sense of what the Canadian economy is doing after this week.

Stocks are set to open a little higher this morning but I get a sense that any gains now will be a little more muted as markets calm down, it is a quiet week on the calendar for the US economy so look for the Dollar to continue to trade with a weak bias and stocks to continue to move forward.