The market is awaiting any signs of an interest rate cut in the Fed’s speech

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

US Dollar        1.3525-1.3625

Euro                1.4600-1.4700

Sterling           1.7000-1.7100

WTI Oil (opening level) $70.00

Currency traders will be in for a couple of active days this week as today the market gets the US November inflation report and then that is followed on by the US Federal Reserve interest rate decision tomorrow. Inflation is expected to have come in flat last month which would leave an annualized rate of inflation of 3.1% in the US. We should have a clearer picture of what is going on with the US economy over the next couple of days.

The Canadian Dollar is also holding steady this morning as USD.CAD trades near the lower end of the recent range near the 1.3550 (0.7380) level, the Loonie has made some very small gains against the other currencies but for the most part the Canadian Dollar remains on the sidelines for the moment.

With the last interest rate announcement of the year due up tomorrow, markets will become increasingly focused on when the Fed will start to cut interest rates and tomorrow, they will be looking for anything in the Fed's language for signs of when they will begin to cut interest rates. US stocks finished higher yesterday and are pointing to a positive opening but like the currency market, stocks will react to today's inflation report.