Euro has fallen below parity against the US dollar

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

US Dollar             1.2950-1.3050

Euro                     1.2950-1.3050

Sterling                1.5300-1.5400

WTI Oil (opening level) $90.65

The US Dollar index is again stronger this morning as it is more of the same for the markets, stocks are much lower, interest rates are rising and for the first time since 2002 the Euro has fallen below parity against the US Dollar. As I write this morning EUR.USD trades right at the 1.0000 level but the overnight low was 99.88 so once again a tough night for the Euro. The main reason for the weakness is the cost of natural gas futures and Russia playing a game of chicken with the European economy.  The pipeline that supplies natural gas to Europe has been shutoff for "maintenance" once again, this unexpected level of supply as winter approaches will continue to play havoc with the European and global economies as the weeks continue.

The Canadian Dollar has again lost ground to US Dollar strength but in reality, is not performing much better than a lot of the other currencies. USD.CAD opens the week back near the 1.3000 (0.7692) level but as picked up gains both against the Euro and Pound. I may be wrong put I get the feeling that this may be the push that USD.CAD needs to finally break and hold above the 1.3000 level.

A quiet start to the calendar but later in the week we get the US GDP report for the 2nd quarter and we also get Fed Chair Powell's address to the Jackson Hole symposium which is the yearly gathering of Central Bankers from around the world. Today looks like another tough day on the markets, stocks are pointing some 300 points lower after they closed down almost 300 on Friday, look for continued US Dollar strength throughout the week.