US Dollar Gains Amid Market Chaos Following Weak Job Report

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

US Dollar        1.3800-1.3900

Euro                 1.5050-1.5150

Sterling            1.7650-1.7750

WTI Oil (opening level) $72.38

The US Dollar index is stronger this morning as most of the Canadian market comes back from the holiday weekend. You will have probably read yesterday that the markets have been in chaos since the US July Employment Report showed that the US economy only created 145K new jobs last month which is the lowest level of job creation in some time. The markets have been gripped in panic mode since Friday as the Dow Jones closed down over 1,000 points or over 2.6% on Monday. Again this move was led by a steep decline in Tech stocks as the strength in AI stocks may be gone.

The US Dollar also had a rough day yesterday as it traded much weaker with EUR.USD rising at one point almost 200 points and GBP.USD rose about 130 points before falling back this morning.

The Canadian Dollar briefly dipped below the 1.3800 (0.7246) level yesterday before USD.CAD moved back higher overnight. The Loonie was able to pick up some small gains against the other currencies overnight so not a total loss for our Dollar but I still think the Loonie has a tough path to any significant strength so I still recommend buying US Dollars on any dips in the rate.

There is lots of secondary data on the calendar today but all financial market eyes will be on the stock market to gauge the extent of the meltdown. The TSX should have a tough day as it will play catch-up after being closed yesterday but at the moment most Asian and European markets traded higher overnight and the futures market is pointing at a 275 point opening for the Dow Jones. Volatility will remain front and centre in the coming days.