USD index climbs higher, taking advantage of the weaker Euro

WTI Oil (opening level) $100.25 (Down over $8)

The US Dollar Index is marginally higher again this morning as the Dollar was boosted by a weaker Euro, the currency markets continue to push the Euro lower on fears of higher energy prices and lack of supply in the coming months. In addition to weakness in the Euro the Dollar continues to garner benefit from the safe haven effect as recession fears continue to grow. Up today we will get a clearer picture of what the US Federal Reserve is thinking as we get the minutes from their last meeting, the minutes should confirm that Fed sees higher interest rates throughout the rest of the year.

The Canadian Dollar is again weaker against the US Dollar this morning as USD.CAD has broken through the 1.3000 (0.7692) level and at the moment the currency pair looks set to move higher. The Loonie is still doing better against the other currencies as it made small gains against both the Euro and Pound but a big drop yesterday in the oil price did little to help all the commodity currencies.

The calendar today will focus on the Fed minutes but stocks after a tough day yesterday are again pointing lower on the opening so look for more US Dollar strength early on.