OPEC meeting led to disagreement on oil production limits

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

US Dollar         1.2325-1.2425

Euro                 1.4600-1.4700

Sterling            1.7175-1.7275

The US Dollar Index is marginally higher in the last few hours after spending most of the overnight session trading on it's backfoot. The US market gets set to return this morning and will be dealing with the strong Payroll numbers from Friday and the upcoming Federal Reserve meeting minutes to be released tomorrow.

The interesting news overnight was the fact that the OPEC meeting dissolved into chaos as the countries could not agree to on oil production limits going forward. The price of a West Texas Barrel of oil jumped to $78.95 (a new high for the year) which will push inflation higher in the short-term and will get most Americans riled up. There is nothing worse than rising gas prices for a sitting American President so the Democrats are going to be in trouble.

The Canadian Dollar is weaker this morning as USD.CAD jumped to open the morning at the 1.2360 (0.8090) level. During the overnight session the Loonie was a bit stronger but as the US Dollar started to recover in the last few hours it gave back those gains. Stocks are pointing lower on the North American opening so you may see the Loonie lose a little more ground to the Greenback this morning.