USD Marginally Rebounds Amid Fed Rate Cut Speculations; ECB Announcement Awaited as Euro Strengthens

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

US Dollar        1.3650-1.3750

Euro                 1.4900-1.4500

Sterling            1.7750-1.7850

WTI Oil (opening level) $81.17

The US Dollar index is marginally stronger this morning as it bounced off its lows of yesterday where it traded the lowest it has done since last March. The growing expectation that the conditions are ready for a Federal Reserve interest rate cut in September continue to weigh on the Dollar.

Interest rates are front and centre this morning as the market gets the latest announcement from the European Central Bank, it is expected that the ECB will keep interest rates steady after cutting in June, market investors will be awaiting comments from ECB head Lagarde on what she sees is coming next for European interest rates. The Euro has been trading stronger ahead of this announcement.

The Loonie continues to range trade against the US Dollar but USD.CAD has moved slightly higher to open the day near the 1.3670 (0.7315) level. The Loonie did lose some ground to the stronger Euro overnight but for the most part our Dollar remains on the sidelines for the short-term.

Other than the ECB announcement the calendar is quiet with just some secondary US Data and Fed speakers. Stocks had a interesting day, with the tech heavy NASDAQ falling while the Dow jumped higher and the growing likelihood of a Trump presidency growing, investors moved out of tech stocks and into more traditional investments. Tech stocks were the real force behind the record performance in the stock markets this year so It will be interesting to see if this trend continues over the rest of the summer.