American dollar appreciates after poor US Employment report

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

US Dollar             1.2525-1.2625

Euro                     1.4875-1.4975

Sterling                1.7300-1.7400

The US Dollar Index is marginally stronger this morning after a very poor employment report on Friday. The US market only created 235K new jobs in August after the market expectation was for 720K. Investors looked at this number as the Delta variant having a strong effect on the economy and which will most likely lead the Federal Reserve to delay they scaling back of their stimulus program.

With inflation running hot and unemployment remaining high the passing of the Biden infrastructure bill in the US takes on even more importance but with the Republicans smelling weakness in the Democrats just a year ahead of the next set of US elections it is unlikely they will do anything to help the Biden agenda so look for the US Dollar to remain trading with a strong bias and stock to get very volatile.

USD.CAD opens the shortened trading week at the 1.2580 (0.7949) level. the Loonie did pick up some small gains after the weak US Jobs report on Friday but has given some of those back overnight as the markets reopen after the holiday weekend. Nothing of note on the calendar today so look for USD.CAD to remain range bound with the chance that it could push back to the 1.2600 level at some point during the week.