USD.CAD hits a two-year high

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

US Dollar             1.3250-1.3350

Euro                     1.3250-1.3350

Sterling                1.5100-1.5200

WTI Oil (opening level) $83.30

The US Dollar index remains strong in a quiet trading session as Japan is closed for a holiday and England is closed for the Queen's funeral. Markets are bracing for an important week ahead as we get a slew of global interest rates announcements highlighted by the US Federal Reserve announcement on Wednesday. The US Dollar index was about half a percent higher overnight and once again is near 20-year highs with no sign of slowing down in the short-term.

The Canadian Dollar has been hit hard against the US Dollar over the last couple of sessions, last night USD.CAD hit a new two-year high of 1.3320 (0.7508) before pulling back a little strength overnight. If the Federal Reserve goes a full point on Wednesday, you can expect USD.CAD to push even higher. That being said the Loonie has held its ground against the other currencies so it is not as bleak a picture as some other currencies at the moment.

Nothing much on the calendar today, tomorrow we get the Canadian inflation data for August, stocks globally were all lower last night and North American stocks are pointing some 200 points lower on the opening so look for more US Dollar strength in the coming days.