Currency market remains quiet as America celebrates Independence Day

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

US Dollar             1.2800-1.2900

Euro                     1.3400-1.3500

Sterling                1.5600-1.5700

WTI Oil (opening level) $109.00

The US Dollar Index is marginally lower this morning in what will be a quiet start to the first week of July as the US markets are closed for the holiday. The overall sentiment remains strong for the Greenback as more and more the investors are expecting most Western economies to head into recession sometime over the next 12 months as the effect of higher interest rates weigh on the global economy. Investors will continue to move out of stocks and into safe haven investments like US Treasury notes until inflation comes back under control.

The Canadian Dollar is a little stronger this morning as it has been able to pick up some strength over the last few days, USD.CAD opens the new month near the 1.2850 (0.7782) level so the Loonie continues to hold in recent trading ranges. The Loonie is also holding onto recent gains against the other currencies so overall the Canadian Dollar is hanging in despite the growing uncertainty in the financial markets.

Markets will get back to normal tomorrow as they await the Friday employment reports from both Canada and the US, ahead of those numbers the market should remain range bound.