USD strengthens slightly as RBA keeps rates steady, while BOJ warns against yen speculation amidst market caution.

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

US Dollar        1.3650-1.3750

Euro                 1.4700-1.4800

Sterling            1.7125-1.7225

WTI Oil (opening level) $78.02

The US Dollar index is marginally stronger this morning in a very quiet overnight session. In the biggest news of the overnight market the Reserve Bank of Australia did not make any changes to its key lending rate, again like other Central Banks citing the stubbornness of inflation to fall towards the 2% rate as the reason rates are not dropping. The Aussie Dollar had a small jump on this report but for the most part it was priced into the market.

 In other overnight news the Bank of Japan commented that they will not tolerate on any large speculative moves in the Yen as it continues to weaken. While the BOJ will not comment on whether they intervened in the currency markets last week market data suggests that they spent over $50 Billion in selling US Dollars and buying the Yen. If the Yen weakens again this week then we should see further Central Bank activity.

Canadian Dollar activity remains muted as USD.CAD continues to range trade near the 1.3700 (0.7299) level. The Loonie made some small gains against the other currencies overnight but for the most part the Loonie remains on the sidelines of the market for the time being.

Stocks were mixed overnight after North American posted a strong rally yesterday and are pointing to a flat opening this morning. For the most part markets should remain supported over the coming days until we get more data on the US economy.