The Canadian balance of trade showed a downgrade from the previous reading

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

US Dollar        1.3325-1.3425

Euro                1.4575-1.4675

Sterling           1.6950-1.7050

WTI Oil (opening level) $72.69

The US Dollar Index is marginally stronger this morning as the dollar tracked a small overnight rise in US commercial interest rates and a small recovery in US stocks yesterday. The trend of strong stocks and a weakening dollar seen at the end of last year has certainly reversed itself to start 2024 and most likely will stay that way until we see the December inflation report on Thursday.

The Canadian Dollar continues to range trade and it is marginally stronger this morning as USD.CAD moved lower overnight to open the day near the 1.3370 (0.7479) level. Again, with nothing positive on the immediate horizon for the Loonie it will go where the US Dollar takes it so US Dollar buyers keep buying on dips and US Dollar sellers keep taking what ever the market gives you.

On the calendar today we had the Canadian balance of trade in November and it showed a surplus of $1.6B which is down from the previous reading of $3.2B in October. This is not enough to move the needle on the Loonie but it is another indicator of the slowing Canadian economy.

Stocks are pointing for a big drop on the opening so look for the US Dollar to make some small gains throughout the day.