Bond prices rise indicating the U.S. interest rate decline

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

US Dollar        1.3600-1.3700

Euro                1.4900-1.5000

Sterling           1.7200-1.7300

WTI Oil (opening level) $74.67

The US Dollar index is marginally weaker in a quiet overnight session as the US market gears back up to full speed after the extended Thanksgiving holiday. There is lots going on at the moment that should keep any gains for the Dollar muted, bond prices are rising once again which means US interest rates are falling, stocks have had a recent strong run but look set to give back some gains today as the recent rally may be coming to an end and the oil price continues to fall but that may change as the OPEC meeting this week looks like it will finally go ahead. Lots of activity for the market to keep an eye on over the coming weeks.

The Canadian Dollar picked up some small gains against the US Dollar on Friday, USD.CAD starts the week a little lower at 1.3630 (0.7368) but for the most part it is still range trading with little movement. The Loonie did lose a little strength against the other currencies so overall not much has changed for our dollar.

The calendar is quite busy to close out the month as we get both US and Canadian GDP reports as well as Canadian Employment report on Friday. Stocks are pointing lower on the opening so look for the US Dollar to remain supported is a quiet market.