Market Recap: US Dollar strengthens after stellar jobs report, Canadian Dollar faces pressure amid economic challenges

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

US Dollar        1.3550-1.3650

Euro                1.4675-1.4775

Sterling           1.7100-1.7200

WTI Oil (opening level) $86.33

The US Dollar index is marginally weaker this morning but that is only after a strong day Friday to close out the week. The US Employment report for March blew away expectation as the economy created just over 300+K new jobs and left economists wondering if the Fed will delay the interest rate cuts expected later this summer. The US economy is well ahead of its peers and has been able to flourish despite higher interest rates which means the US Dollar should stay supported as other Western Central Banks start to cut their interest rates first.

The Canadian Dollar did not fare all that well as USD.CAD opens the day near the 1.3600 (0.7353) level. Our Employment report for March showed that the unemployment rate jumped to 6.1% and the country lost over two thousand jobs last month. Almost certainly the Bank of Canada will have to cut interest rates to help the economy before the US Federal Reserve and that should keep the Loonie trading with a weak bias.

All market eyes this week will be on the US Inflation report for March, it should give the market a bit of clarity on what the Fed will do this summer. Nothing on the calendar of note for today. After a strong close to the week the stock market is set for a flat opening but should remain steady ahead of the inflation report on Wednesday.