Chinese economy is in trouble as the country enters another week of severe lockdowns

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

US Dollar             1.2900-1.3000

Euro                     1.3450-1.3550

Sterling                1.5800-1.5900

WTI Oil (opening level) $109.30 (Oil price is up $5.00 from Friday's opening level)

The US Dollar Index is marginally weaker this morning in a fairly muted overnight session to start the week. Global stock markets were all lower this morning as the Chinese economy reported some worrying numbers as that country enters another week of severe virus related lockdowns. On the weekend Goldman Sach's Chair Lloyd Blankfein that there is a very high risk of a recession in the US and companies should prepare for it. High inflation and low growth is a disaster for any economy especially the US and a US led recession would surely spread around the globe.

The Canadian Dollar has made some small gains this morning as USD.CAD dropped back below the 1.2950 (0.7722) level and the Loonie also managed to pick up some gains against the other currencies so overall a good start to the week. The Canadian market will be awaiting the April inflation report on Wednesday to see like the US if there are any signs of inflation moderating in Canada.

Nothing of note on the economic calendar for today, US stocks are pointing a little lower on the opening so if the stock market remains calm then the US dollar should remain at current levels throughout the day.