USD index falls as the oil price jumps to $60 a barrel

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

US Dollar         1.2600-1.2700

Euro                 1.5350-1.5450

Sterling            1.7550-1.7650

The US Dollar Index is weaker this morning as overnight the price of oil jumped to $60 a barrel at one point as a huge cold snap in the USA has crippled energy grids and caused rolling blackouts throughout the states. Stocks are mixed as Asian stock markets moved higher in early trading but a lot of them have given back some of their gains and at the moment the US Dollar is trading much weaker than its close on Friday.

The Canadian Dollar has had a strong showing yesterday and into the overnight session as it was pushed higher on the quick jump in the oil price over the holiday Monday. USD.CAD opens the day at the 1.2640 (0.7911) level and once again we see a quick jump in the Loonie meet resistance at the 1.2600 (0.7937) level, this should present a good opportunity for US Dollar buyers to pick up some up at a cheaper levels than we saw last week, if the oil price calms down as it surely will then we could easily see USD.CAD snap back higher in the coming days.

Nothing of note on the calendar today, tomorrow we get the Canadian Inflation report so our markets will get ready for that. For today keep an eye on the price of oil, if it continues to jump higher than the Loonie should make some more gains.