Protests in China set back global financial markets

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

US Dollar             1.3400-1.3500

Euro                     1.4000-1.4100

Sterling                1.6200-1.6300

WTI Oil (opening level) $74.10

The US Dollar index is weaker this morning as weekend protests in China over that country's latest COVID lockdowns have spooked the stock markets and put the oil price and other commodities under pressure. The Euro has been the biggest beneficiary of the weaker US Dollar with EUR.USD reaching a new multi-month high near 1.0500, EUR.CAD has also had a big jump reaching rates last seen in February of this year.

The Canadian Dollar has not been able to make any progress against the weaker Greenback as USD.CAD has moved higher this morning to trade at 1.3445 (0.7438). The weaker commodity markets and in particular the drop in the oil price is not allowing the Loonie to show any signs of strength at the moment and this may continue for a while.

Nothing of note on the calendar today, stocks are pointing some 180 points lower on the opening so the US Dollar may pick up a little strength as the day goes on. Markets will be watching for the turn of the calendar as we then get the US November Employment report on Friday. Markets will be looking for signs that the job market is slowing which would give credence to the Fed's plan to slow the economy to get inflation under control.