The Loonie gained some strength from the oil price overnight’s rise

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

US Dollar         1.3450-1.3550

Euro                 1.4600-1.4700

Sterling            1.7100-1.7200

WTI Oil (opening level) $84.63

The US Dollar index is marginally weaker this morning but still higher after a strong day yesterday that saw the Euro drop quite a bit on weaker economic data out of the EU. The focus for the Dollar today will be on the US July Employment report which is expected to show 170K new jobs were created last month, anything less than this number will spook investors as they will start to question the US economy and the necessity for higher interest rates. If the number comes in stronger than expected then you will see the Dollar jump as higher US interest rates in November will almost be a certainty.

The Canadian Dollar picked up some strength yesterday as the oil price had a big jump overnight, USD.CAD opens the day lower near the 1.3500 (0.7407) level and remains steady ahead of the US Employment report. The Loonie will also be influenced today by the Canadian GDP report which is expected to show an annualized growth rate of 1.2% which is down from the 3.1% in the first quarter. The economy was able to stave off a recession at the end of 2022 so economists will be watching to see if this drop is a continuing trend or just a one-off. If the economy is responding well and inflation remains high it will give the Bank of Canada room to increase interest rates further which should support the Canadian Dollar longer term.