Investors are watching whether diplomatic efforts will bring the Middle East conflict to a close

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

US Dollar         1.3600-1.3700

Euro                1.4300-1.4400

Sterling           1.6550-1.6650

WTI Oil (opening level) $87.85

The US Dollar index is marginally weaker this morning but that was after it had a strong week previously. Stocks are a little higher in Asia which will lead to a positive opening here in North America but for the most part investors are watching with caution to see if the Middle East conflict spreads to other countries, if this happens then you will see the stock markets fall off and the Dollar jump. Longer term investors are still awaiting word from the Federal Reserve on what they will do with interest rates next month.

The Canadian Dollar starts the week a little stronger as it picked up some gains against both the US Dollar and the other currencies. USD.CAD opens the day at the 1.3635 (0.7334) level which is down from its highest level of last week by about 100 points. It is a big week on the calendar for the Loonie as we get the August inflation report tomorrow, on Thursday we get more inflation data in the form of the Producer Price index and finally on Friday we get the Retail Sales report for August so hopefully we see some movement out of the Loonie this week.

For today stocks will open higher but should remain stable, the US Dollar may give back some strength in a quiet market but if diplomatic efforts fail at bringing the middle east conflict to a close then markets will continue to be very nervous and the Dollar will jump higher over the next few days.