The Loonie continues to benefit from the weaker USD index

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

US Dollar         1.2100-1.2200

Euro                 1.4700-1.4800

Sterling            1.7050-1.7150

The US Dollar Index is trading weaker this morning as the global markets continue to react to a very poor US Jobs report on Friday. The US economy created just over 260K new jobs last month, disappointing the market expectation for over 1.0M new jobs to have been created. This poor number has put back the timeline for any Federal Reserve easing of their stimulus plan and should keep the US Dollar trading with a weak bias for some time to come.

The Canadian Dollar continues to benefit from the weaker US Dollar with USD.CAD opening the day at the 1.2120 (0.8251) level, it did briefly trade below the 1.2100 (0.8264) level for a short while overnight but it was not able to hold those gains for very long. The Loonie did lose a little overnight ground to other currencies so the shine may be off our Dollar at the moment, at these levels it won't appreciate over the short-term as much against the other currencies as it will against the US Dollar.

It is a quiet week for market data, we get US inflation on Wednesday and then some US Federal Reserve and Bank of Canada officials giving speeches throughout the week. Look for the Canadian Dollar to remain at current levels as it awaits its next move.