Euro and Pound recover some of the losses

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

US Dollar             1.3100-1.3200

Euro                     1.3000-1.3100

Sterling                1.5150-1.5250

WTI Oil (opening level) $86.40

The US Dollar index is marginally weaker this morning as full trading resumes after the Labour Day holiday. The Euro and Sterling have recovered some of their losses from Friday as both the EU and the UK are considering measures to cap the price of energy for both households and businesses. In the UK it is reported that new UK Prime Minister Liz Truss is considering a price freeze on UK household energy bills which would leave the government holding the bag for the shortfall in market pricing, that could get very expensive very quickly but for the moment Sterling has shown some strength on this news.

The Canadian Dollar has backed off of the 1.3200 (0.7576) level for the time being as it was able to take advantage of the overnight weakness in the US Dollar. The Loonie was able to pick up some small gains against the other currencies and this was despite a significant drop in commodity prices, look for more range trading as we await the Canadian Employment report on Friday.

It should be more of the same for the US Dollar this week, Friday's August Employment showed that the US economy is still creating new jobs even though the rate of job creation has slowed a bit, this will give the US Federal Reserve enough resolve to keep increasing interest rates at a significant pace at least until the end of the year.

Stocks are pointing higher after a positive overnight session around the globe, look for more range trading for USD.CAD today with the rate staying above the 1.3100 (0.7634) level for the short-term.