Sterling falls as the U.K. reports negative GDP

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

US Dollar             1.2750-1.2850

Euro                     1.3100-1.3200

Sterling                1.5500-1.5600

WTI Oil (opening level) $92.90

The US Dollar index is marginally stronger this morning but that is after the dollar fell over the last two days on the US inflation report that showed inflation in the US had slowed more than expected in July. The Dollar index dropped on the report as it was expected that the Fed might consider slowing the rate of interest rate hikes but in listening to different Fed officials over the last couple of days it looks like they will continue on their course of action to increase interest rates so the Dollar has rebounded a little this morning.

Sterling was the big mover overnight as the UK economy reported a decline in GDP for the first time in over a year, this follows up on last month's prediction by the Bank of England that the UK economy would head into a recession in the coming months. Look for Sterling to remain weak.

The Canadian Dollar was able to make some small gains after the US Inflation report but like other currencies it gave back some of those gains overnight and USD.CAD trades higher this morning back near the 1.2800 (0.7812) level. It should remain steady for the rest of the day.

Nothing of note on the calendar today, stocks are again pointing higher after a small gain yesterday, currencies should remain fairly steady as the markets head into the weekend.