The news about the bailout for Credit Suisse provoked a recovery of the stock market and slight depreciation of the dollar

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

US Dollar         1.3700-1.3800

Euro                 1.4525-1.4625

Sterling            1.6500-1.6600

WTI Oil (opening level) $67.77

The US Dollar index is marginally weaker this morning as the news that a bailout of some $50 Billion Dollars for Credit Suisse is being provided by the Swiss Central Bank in the form of a line of credit helped to bring stocks back up from their lows and helped push the Dollar back down. Stocks still finished the day much lower yesterday but for the moment investors are breathing a sigh of relief about further bank losses.

This morning investors will also be watching what the ECB does with interest rates, they are still expected to increase their key lending rate by 0.5% which should help to push the Euro higher. Of interest will be ECB President's press conference where she will have to address the current banking crisis.

The Canadian Dollar was able to pick up some gains with the weaker US Dollar yesterday as USD.CAD dropped to trade at 1.2730 (0.7855) before pulling back a little higher this morning. Canadian Banks have not been immune to the current crisis as all of the big 5 stock prices have dropped quite a bit in the last couple of days and they look like they could drop further today. I still feel it will be tough for the Loonie to go on a sustained run but we will see what the next few days bring.

Stocks are again pointing lower on the opening and with Goldman Sachs saying in a report that the risk of a US Recession is now at 35% and also still more smaller US banks at risk we should see further declines in stocks while this mess gets sorted. The US Dollar still should have some room to garner more strength as we get closer to the Fed decision on interest rates next week.