The Canadian dollar advanced against the U.S. dollar Monday morning after losing ground to the greenback in overnight trading.

The dollar is expected to trade in narrow range against the U.S. dollar today and tomorrow ahead of Wednesday's rate announcement by the U.S. Federal Open Markets Committee. Expectations are that the Fed will leave interest rates unchanged despite recent talk of late that that the Fed may be ready to make a move to increase interest rates in the near future.

While many including U.S. President George Bush are calling for the return of a strong dollar, U.S. fundamental financial data does not support such a move at this time. An increase to the federal funds rate on Wednesday would surprise the markets, but it is just as likely that the Fed will provide further stimulus to the struggling U.S. economy.

By 2 p.m. Monday the Canadian dollar was trading up against U.S. dollar at 0.9848.

Market report prepared by Bruce Hauser

Accu-Rate Corp.

2573 Carling Ave. Ottawa, ON K2B 7H7

Tel: (613) 596-5505

E-mail: bruce@accu-rate.ca