CAD dollar appreciates as the oil price jumped to over $83 a barrel

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

US Dollar             1.2400-1.2500

Euro                     1.4350-1.4450

Sterling                1.6750-1.6850

The US Dollar index is marginally stronger this morning in another quiet overnight session, US markets are getting ready for the US October inflation report. The market is expecting another big jump in inflation (to 5.8%) so it will be interesting to see if the Fed will stick to its strategy of believing inflation will be transitory and return to normal levels next year.

The Canadian Dollar was able to pick up some small gains yesterday, the US oil report showed that oil inventories in the US were on the decline so the price jumped to over $83 a barrel but also the report stated that the global oil market will become oversupplied early next year and prices will drop. If this comes to pass you may see the Canadian Dollar come under pressure.

USD.CAD remains range bound, a strong US inflation reading this morning could push the currency pair a bit higher but for the most part we should stay close to current levels.