Canadian dollar picked up some strength as the BoC is not certain about the future rate hikes

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

US Dollar             1.3550-1.3650

Euro                     1.4250-1.4350

Sterling                1.6550-1.6650

WTI Oil (opening level) $74.80

The US Dollar index is marginally stronger this morning in a quiet overnight session, the Dollar seems to be remaining steady as investors continue to weigh the battle between high interest rates tackling persistent inflation and the possibility of a recession next year. We will get more information on this key battleground next week with the release of the November Inflation report and the announcement from the Fed on their latest interest rate hike.

The Canadian Dollar picked up a little strength yesterday and into the overnight session as the Bank of Canada as expected announced another 0.50% interest rate hike. USD.CAD fell from a pre-announcement high of 1.3700 (0.7299) to trade at 1.3590 (0.7358) this morning. Of more importance was the statement from the Bank that that the next interest rate hike is not certain and that they will look at what is happening with the economy before making a decision. This is the first sign that interest rates may have peaked in Canada which is if the case will slow any Canadian Dollar progress. With the US continuing to increase interest rates albeit at a slower pace next year the Loonie could easily fall further behind the Greenback.

Nothing of note on the calendar today, stocks were mixed overnight and are pointing higher on the opening so the US Dollar should remain range bound over the session.