American Dollar pulled back some losses from the last week

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

US Dollar         1.2050-1.2150

Euro                 1.4650-1.4750

Sterling            1.7075-1.7175

The US Dollar Index is marginally higher this morning in a quiet overnight session. The Dollar was able to pull back some losses from Friday's slightly less than expected increase in US job creation, the market is looking at the number of jobs created in May as a positive but not enough where the Federal Reserve would have to consider increasing interest rates because of an overheating economy. For now, the US Dollar should remain vulnerable to a drop against other currencies but that could change if inflation continues to surge.

The Canadian Dollar opens the week at the 1.2070 (08285) level so for the moment it seems to be range trading once again and the current strengthening bias for the Loonie has come to an end. If the US Dollar remains weak then we could again see the Canadian Dollar go on another run but for the moment USD.CAD should remain stable.

It will be a busy week on the calendar with the highlight being the US Inflation report for May on Thursday. Once again investors will be looking to see what is happening with inflation in the US and the reaction that the Fed will have to another high number. I would not be surprised if all markets remain quiet until Thursday.