US Dollar Dips on Weaker Retail Sales, Investors Cautious; Canadian Dollar Holds Steady Amid Quiet Overnight Trading

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

US Dollar        1.3450-1.3550

Euro                1.4450-1.4550

Sterling           1.6950-1.7050

WTI Oil (opening level) $77.48

The US Dollar index is marginally weaker this morning in a quiet overnight session. The Greenback moved off a 3-month high as the US retail sales report showed a drop last month, investors are worried that this may be the first chink in the armour of the strong economy which may force the Fed to cut interest rates before inflation is under control at 2%. It will be interesting to watch to see if this is the start of a trend or just a one off.

The Canadian Dollar was able to move back below the 1.3500(0.7407) level in an uneventful overnight session. The market gets some data today in the form of wholesale sales report but it won’t be enough to move the needle on the Loonie, look for it to continue to range trade ahead of the Family Day holiday.