US Dollar Dips as Markets Eye Inflation Data and Presidential Debate Impact

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

US Dollar        1.3550-1.3650

Euro                 1.4950-1.5050

Sterling            1.7750-1.7850

WTI Oil (opening level) $67.17

The US Dollar Index is marginally weaker this morning and stocks are pointing lower to start the day but that is after both markets had a very strong day yesterday in recovery mode from Friday's big drop. The Dollar was higher against most currencies and stocks finished the day up over 240 points but reached as high as 400 points at one point during the day, markets will now await tomorrow's US inflation data for the final piece of the puzzle before next week's Fed announcement.

The Canadian Dollar remains range bound in the 1.3500-1.3600 range but is a bit weaker today as USD.CAD approaches the 1.3575 (0.7366) level, the Loonie should remain stable and range bound ahead of tomorrow US inflation data and then it will set up for the Fed announcement next week. Once again I see no reason why the Loonie should go on an extended run of strength so US Dollar buyers should continue to watch for dips in the rate.

The calendar is quiet today but investors will be watching the Presidential debate tonight to assess the performance of the candidates, a poor performance by Harris could send the overnight markets into a tail spin very quickly and push the Dollar higher.