The US dollar lost some strength in the morning cause the First Republic got an infusion from American banking giants to avert the crisis

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

US Dollar         1.3700-1.3800

Euro                 1.4525-1.4625

Sterling            1.6550-1.6650

WTI Oil (opening level) $69

The US Dollar index is marginally weaker this morning as stocks staged a small rebound yesterday on the news that several of the bigger US banks threw a lifeline to another small American Bank by making very large deposits in First Republic to prevent a run on deposits and possible further contagion. Stocks were able to recover throughout the day but are still very vulnerable to the current banking crisis and are again pointing lower this morning.

The Euro is a little higher as the Credit Suisse bailout and a 0.50% interest rate hike yesterday from the European Central Bank gave the Euro a boost throughout the day but should also leave room for the US Federal Reserve to increase US interest rates by 0.25% next week despite the current banking crisis.

The Canadian Dollar is for the most part unchanged this morning, it picked up a little strength against the US Dollar yesterday but lost a little ground to the Euro and Pound so the Loonie continues to range trade.

The highlight of the calendar this morning will be the Euro Zone inflation data that is expected to show inflation still running hot in the EU so the Euro may get a further boost at the expense of the Dollar. Stocks are pointing lower by over 100 points at the moment so they could be in for another tough day led lower by poor performance in the financial sector.