Stocks point lower as investors await the US Employment report

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

US Dollar             1.2550-1.2650

Euro                     1.3450-1.3550

Sterling                1.5750-1.5850

WTI Oil (opening level) $116.00 (up $3.50 from yesterday's opening)

The US Dollar Index is marginally weaker this morning, yesterday saw stocks rise as Saudi Arabia agreed to boost production of oil for the peak demand summer months and China announced the lifting of some COVID restrictions. There was definitely a positive mood yesterday among global investors but I am not sure how long that will last as stocks are again pointing to a drop on the opening today as the markets await the US Employment report later this morning.

The Canadian Dollar was able to extend some gains yesterday and hold onto that strength overnight so overall a good performance for the Loonie. USD.CAD opens the day near the 1.2575 (0.7952) level and made significant gains against the other currencies. The Loonie is clearly benefitting from calls for 3.0% interest rates by the end of the year and commodity prices that are continuing to soar. The big question is of course can it hold onto this strength for an extended period of time?

Up today the US economy is scheduled to report that some 325K new jobs were created last month, while a positive number it will be the lowest job creation number in almost a year which may further signal a slowing of the US economy. If the number is less than this I am sure stocks will crash hard and the Dollar may jump.