Stocks recover as investors react to the announced US and Russia meeting next week

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

US Dollar             1.2650-1.2750

Euro                     1.4400-1.4500

Sterling                1.7250-1.7350

The US Dollar index is marginally weaker this morning as markets react to the announcement that the US and Russia will meet once again next week to try to diffuse the situation on the Ukrainian border. Markets had been growing very nervous about an imminent attack so this move may buy some time and give stocks some life after a tough few days this week.

The Canadian Dollar is a little stronger this morning and has really stayed relatively calm this week despite everything that is going on and an inflation report that showed Canadian prices rising over 5% in the last year. I am convinced now that we will also see Canadian interest rates rising later this year.

Up today we get the Canadian Retail Sales report for December but I think that will be ignored for the most part as it is old data, look for Russia/Ukraine talks to dominate the financial markets for the next few days. It is a holiday on Monday here in Ontario and the TSX is closed so it could be a volatile upcoming week with the TSX and Loonie playing catch up if anything happens over the weekend.