The Israel-Hamas war caused a spike in global oil prices

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

US Dollar        1.3550-1.3650

Euro                1.4350-1.4450

Sterling           1.6600-1.6700

WTI Oil (opening level) $86.04

The Dollar remains supported after Friday's stronger than expected Employment report where the economy saw some 336K new jobs created last month, this should give the Federal Reserve room for another interest rate hike next month with possibly of only a weak September inflation report or continued high bond yields derailing that possibility. The Dollar also picked up some further strength from the most recent round in the Israel-Hamas conflict as the uncertainty from that attack has pushed the oil price much higher.

The Canadian Dollar is a little stronger as the Canadian market returns from the Thanksgiving holiday. With the strong employment report on Friday where just over 63K new jobs were created and a jump in the overnight oil price the Loonie was able to extend some gains and opens the day at the 1.3600 (0.7353) level, the Loonie also was able to pick up some gains against the other currencies so overall a good start to the week for the Loonie.

The highlight of the calendar this week will be the US September inflation report which is due out on Thursday, ahead of that report both stocks and the dollar should remain steady. For today, stocks after a positive day yesterday are pointing higher to start the day but if there are any further developments with the conflict in the Middle East they may give up those gains quickly and the Dollar will jump higher.