Euro index surges as peace talks between Ukraine and russia go on in Turkey

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

US Dollar             1.2450-1.2550

Euro                     1.3800-1.3900

Sterling                1.6350-1.6450

USD.RUB (opening level) 83.22(The Ruble is much stronger as peace talks are underway in Turkey)

WTI (opening level) $108.35(Down over $7 from yesterday's opening)

The US Dollar index is marginally weaker this morning as peace talks between Russia and Ukraine get underway in Turkey for the first time in two weeks. EUR.USD and EUR.CAD both moved higher overnight as the Euro is the currency that will benefit the most from any possible ceasefire and ultimate peace deal.

Bloomberg reported this morning that the yield on 10-year treasury notes is only marginally higher than the yield on the 2-year note. Economists will be watching to see if the 10-year yield falls below the 2-year yield as that has been a past indicator of a coming recession in the US. If that happens then stagflation (declining growth accompanied by rising prices) is a real possibility for the US economy.

USD.CAD is unchanged to start the day, the Loonie is mostly flat against most currencies but did as I mention lose a little ground to the Euro overnight.

Another quiet day on calendar front, stocks are pointing higher to start the day. If progress is made in the peace talks you could see a big jump in stocks and a drop off in the US Dollar.