Currency markets stay volatile while waiting for the US presidential election outcome

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

US Dollar         1.3100-1.3200

Euro                 1.5375-1.5475

Sterling            1.7100-1.7200

The US Dollar index is quite volatile at the moment as the election results hangs in the balance with a few States to close to call at this point. With a large number of mail-in votes still to be counted it may be several days before the actual result is known but saying that stock markets are quite strong with Asian and European markets all higher and the Dow Jones looking set to open some 100 points higher. Trump has already falsely tweeted that he has won the election and vote counting should stop so if Biden can close the gap in some of the battleground states then look for the process to get quite messy and markets will not like that.

The Canadian Dollar has been bouncing around overnight most currencies, USD.CAD hit a high of 1.3280 (0.7530) before falling to trade as low as 1.3150 (0.7604) earlier this morning. The Loonie has lost a little ground to the other currencies but for the moment our Dollar will remain volatile as the election result continues to unfold.

There is some US Trade data on tap today and markets will have an eye on the Federal Reserve tomorrow but for the most part currency markets will get their cue from what stocks do as more election results come in.