USD index weakens as the Chinese economy rebounds

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

US Dollar             1.3350-1.3450

Euro                     1.4250-1.4350

Sterling                1.6200-1.6300

WTI Oil (opening level) $76.40

The US Dollar Index is at its lowest level in 7 months as markets react to the reopening of the Chinese economy and jobs data that while stronger than expected is still showing signs that a declining economy may slow the labour market enough that the Fed can hold the line on interest rates near 5.0% when they get to that level.

The Canadian Dollar had a big move over the last couple of days as USD.CAD has dropped to trade below 1.3400 (0.7463) and with the weakness in the Greenback it could go a bit further this morning. It is a also a great start for the Loonie against the other currencies as our dollar has picked up a little strength against both the Euro and Pound, overall a positive start to the week for the Loonie.

It is a quiet day on the calendar to start the week, after a very strong day on Friday stocks are again pointing higher to start the day so look for the US Dollar to trade a bit weaker and the Loonie may be able to make some more small gains throughout the day. The calendar highlight this week will be the US Inflation report for December which get released on Thursday.