American dollar and stocks have positively reacted to the US Employment report

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

US Dollar             1.2400-1.2500

Euro                     1.4350-1.4450

Sterling                1.6800-1.6900

The US Dollar index is marginally weaker this morning in what looks like a quiet start to the week. Generally, the Greenback and stocks liked the fact that the US economy created over 500K new jobs last month, a sign that the US recovery is moving along and numbers that should allow the Federal Reserve to increase interest rates next year.

The Canadian Dollar continues to be range bound with USD.CAD opening the day at the 1.2440 (0.8038) level so right where we left it last week. The Canadian employment picture proved quite resilient by the economy creating 31K new jobs last month, it was less than the market was hoping for but still the fifth month in a row of net gains for the economy.

Energy prices still remains a hot topic with the world's leaders. In Europe, natural gas prices are set to rise again as Putin had promised to deliver more gas to Europe but so far has failed on this promise. In America, Biden is considering releasing some of the countries strategic oil reserve as the OPEC countries so far are refusing to increase their production quotas in response to growing global demand. The oil price is near the $82 a barrel price this morning and should remain elevated for a while yet giving some strength to the Canadian Dollar.

This week's calendar will focus on US inflation to be released on Wednesday, the Federal Reserve and Bank of Canada both still state that inflation will be temporary but it may be around longer than first anticipated.