US Dollar Gains Strength Amidst Positive Economic Data and Fed Chair's Comments; Canadian Dollar Faces Challenges, Eyes on Bank of Canada's Macklem Speech

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

US Dollar        1.3500-1.3600

Euro                1.4500-1.4600

Sterling           1.6950-1.7050

WTI Oil (opening level) $73.46

The US Dollar Index is marginally stronger this morning as the Greenback has held onto its recent bouts of strength brought on by strong economic data and comments about interest rate cuts from Fed Chair Powell. As it stands now the Dollar should remain strong and stocks will be under pressure as the interest rate situation plays out in the coming weeks.

The Canadian Dollar struggled over the past 24 hours as USD.CAD broke above the 1.3500 (0.7407)level for the first time in a couple of weeks. The Loonie also lost a little ground to the other currencies overnight so overall the Loonie looks set to trade a little weaker throughout the session. Bank of Canada Macklem does give a speech today in Montreal and will take questions from the press so the market may get some better understanding on what will happen to Canadian interest rates.

Nothing of note on the calendar today, stocks after a tough day yesterday are set to trade lower but there may be a reason for some optimism as Chinese stocks overnight staged a healthy rebound. Look for the US Dollar to remain supported in a tight range today.