Quiet morning for currency markets

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

US Dollar             1.2400-1.2500

Euro                     1.4350-1.4450

Sterling                1.6800-1.6900

The US Dollar index is marginally weaker this morning as markets are fairly quiet ahead of Wednesday's US inflation report. Since the Fed did not announce any timeline for interest rate hikes next year at their last meeting the Greenback has been losing ground, if we get a strong inflation reading tomorrow then we should see the US Dollar start to recover.

The Canadian Dollar is also range bound with USD.CAD remaining steady in quiet markets, in fact I did not have to adjust any of the expected ranges this morning so markets are sitting and waiting for the next big move. The oil price remains above the $81 level, in the US the Biden administration is set to review an important oil report on the supply and forecasted demand for next year before deciding to release the strategic reserve. If he does go ahead and release those reserves we could see a big drop in the oil price and the Canadian Dollar give back some strength.

We do have a BOC governor Tiff Macklem speech today but I don't think he will be mentioning anything about the economy, look for USD.CAD to remain stable ahead of tomorrow's US inflation report.