U.S. strong employment numbers are supposed to buy the Fed some time before making an interest rates dropping decision

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

US Dollar        1.3350-1.3450

Euro                1.4600-1.4700

Sterling           1.6950-1.7050

WTI Oil (opening level) $71.23

The US Dollar Index is marginally higher this morning in a quiet overnight session just as US equity markets are set to continue their downward trend to start the new year this morning. Friday's strong employment numbers will surely buy the Federal reserve some time before it has to cut interest rates so it looks like we will have more of the same (strong dollar and weak stock markets) over the short-term.

The Canadian Dollar starts the first full trading week of the year a little weaker as USD.CAD continues to move higher and start the session near the 1.3400(0.7463) level. The Loonie is also weaker against other currencies as well, both EUR.CAD and GBP.CAD are opening the week a lot higher. The poor employment report from Friday has increased the understanding of just how bad the Canadian economy is at the moment and the Loonie is paying the price with investors.

A quiet week on the calendar with the highlight being the US inflation report on Thursday, ahead of this release look for more weakness in stocks and the US Dollar to move higher in narrow bands.