It is expected that this week will bring significant updates on Loonie and US interest rates

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

US Dollar        1.3415-1.3550

Euro                1.4500-1.4600

Sterling           1.6950-1.7050

WTI Oil (opening level) $77.88

The US Dollar is marginally weaker this morning in a quiet overnight session as the North American markets get back to work after the holiday weekend. The Dollar lost some ground to the Euro as trade news from the EU showed that economy may be starting to recover.

The Canadian Dollar is a still range bound against the US Dollar but did lose some ground to the Euro on the back of the positive overnight news out of the EU. It is a big week for the Loonie as we get the December inflation report, a lower reading for inflation should give way for the Bank of Canada to start to look at cutting interest rates.

Also, this week we get the US Federal Reserve meeting minutes which should help the market understand the thinking behind the Feds plan for interest rates.