American dollar trades higher ahead of the long weekend

WTI Oil (opening level) $109.20

The US Dollar Index is higher this morning as the currency markets head into the long weekend in both Canada and the United States. The Dollar is jumping on the safe haven effect as stocks are set for another big drop again this morning, as I write the Dow Jones is pointing some 330 points lower. Yesterday the fear of a global recession was brought forward as one of the Fed governors was speaking in Europe and stated that the Fed hoped to avoid a recession in the US but it was not certain that higher interest rates would not drag the economy into a downturn. I think we can expect this back and forth views on growth until we see more information on the US economy going forward.

The Canadian Dollar is weaker this morning as USD.CAD moved back higher and opens the day near the 1.2925 (0.7737) level. The Loonie did manage to pick up some strength against the Euro as the Euro looks very vulnerable at the moment, Euro buyers may want to look at picking some up soon if they need short-term Euro.

Up today we get some readings on the US economy in the form of Personal Spending and Personal Consumption. If the US Consumer Confidence report is any indication then the US economy could be in for a difficult time in the coming months.