USD index loses some gains after a strong last week

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

US Dollar             1.3600-1.3700

Euro                     1.4450-1.4550

Sterling                1.6600-1.6700

WTI Oil (opening level) $74.85

The US Dollar index is marginally weaker to start the last trading days before the Christmas holiday period. Stocks around the globe were also marginally higher to start the week after a really tough time last week that saw massive losses around the globe in response to Central Banks all raising their key lending rates. This back-and-forth trend will continue for stocks into the new year as there will be more pain to come while Central Banks continue to increase rates over the next few months.

The Canadian Dollar has settled back into range trading as USD.CAD opens the day at the 1.3650 (0.7326) level and most likely will remain range bound for a while. Up today we get some Canadian inflation data in the form of the Producer Price Index so markets will get a little information to see if prices are starting to moderate here in Canada.

North American stocks are pointing to a small increase on the opening and hopefully they will recover some of last week's big losses. If this is the case then the US Dollar may give back some small gains and the Loonie might benefit.