GBP surges as former U.K. finance minister is elected to run the country

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

US Dollar             1.3700-1.3800

Euro                     1.3450-1.3550

Sterling                1.5500-1.5600

WTI Oil (opening level) $83.30

The US Dollar index is marginally stronger this morning as the Central Bank of Japan once again stepped into the FX markets to intervene on behalf of the weaker Yen, in the UK it is expected that a new Prime Minister will be announced later today and finally in China President Xi Jinping filled out his ruling executive with his supporters leaving markets worried about more government intervention over the next number of years.

In the UK, the Bond market recovered a little as it is expected that former Finance Minister Rishi Sunak will be named Prime Minister later today. If this happens, I think it will calm UK markets in the short-term and bring some stability back to the Pound.

The Canadian Dollar has suffered at the hands of the stronger Greenback to start the last full trading week of October, USD.CAD moved back higher to trade at 1.3730 (0.7283) and it lost significant ground to the other currencies as well. It will probably trade with a weak bias until Wednesday when we get the latest announcement from the Bank of Canada and the latest interest rate hike.

Stocks have been mixed overnight and after a very strong day on Friday are pointing higher to start the day in North America so the US Dollar may pause at these levels but the pressure on the Greenback will remain strong until we here from the US Federal Reserve next month.