The Loonie received an advantage on morning’s inflation rate which shows some rise in core reading

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

US Dollar        1.3300-1.3400

Euro                1.4600-1.4700

Sterling           1.6950-1.7050

WTI Oil (opening level) $72.74

The US Dollar index is marginally weaker this morning but did recover some of its overnight losses on the news that the Bank of Japan was keeping its interest rates in negative territory and wont look at any possible interest rate hikes until next year. USD.JPY jumped almost 1% on the news so the Dollar was able to stem some losses it incurred against the Euro and Pound.

As I write, the Canadian Dollar has rallied on this morning's report that the inflation rate in November remained steady at 3.1% and the Core reading came in slightly higher at 2.8% (up from 2.7%). These readings should be enough for the Bank of Canada to put any interest rate cuts out to the first quarter of next year at the earliest and should help to give the Loonie a small boost today. USD.CAD has dropped to open the day near the 1.3350 (0.7491) level and it should remain supported throughout the day.

Stocks ended up a little higher yesterday and are again poised for a positive opening, the US calendar is quiet today so the US Dollar should remain trading in a narrow range and the Loonie may make some more small gains.