Euro gets back above the parity against the American dollar

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

US Dollar             1.3500-1.3600

Euro                     1.3500-1.3600

Sterling                1.5650-1.5750

WTI Oil (opening level) $86.40

The US Dollar index is considerably weaker this morning as the spate of poor US economic data that has been released over the last month is leading investors to start thinking that maybe as early as the December meeting the Federal Reserve will start to slow the pace of their interest rate hikes to ease the threat of recession with the US economy.

The Pound continues to recover on the back of the new government being formed and in the EU the Euro has jumped back above parity to the US Dollar as reports show that the EU now has more than enough gas stored to get through a normal winter. EUR.USD jumped to trade at 1.0030 this morning on the report so a great result for the common currency.

The Canadian Dollar has made significant gains in the last 24 hours against the US Dollar but lost ground against the other currencies as the market get set for the Bank of Canada announcement this morning, USD.CAD opens the day at the 1.3550 (0.7380) level so it is quite strong ahead of the announcement. The market is expecting another 0.75% interest rate hike which will push their key lending rate to 4% the highest level in years. The Bank is also releasing their monetary policy report and if they come out and say that they will continue on this path (another 0.75% hike) in December then we should see the Loonie get a little stronger today.

Global stocks are mixed this morning and North America at the moment is pointing higher to start the day but that could change quickly as a lot of the big tech companies are showing very poor results from the last quarter. The US Dollar should remain on the back foot throughout the day as the Euro and Pound continue to recover.