USD index falls again due to possible political chaos around 2020 US presidential election

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

US Dollar         1.3000-1.3100

Euro                 1.5400-1.5500

Sterling            1.7050-1.7150

The US Dollar index is weaker this morning as global stock markets continue to move forward in the aftermath of the US Election. The financial markets are still awaiting the final results as Biden inches closer to the needed 270 Electoral College votes and will be watching closely the results of the Trump legal challenges which if successful could turn the whole process into chaos and rile markets around the world.

The British Pound is quite strong this morning as the Bank of England announced a further 150 Billion Pounds are to be added to their stimulus package to help that country through it's new lockdown measures. GBP.USD traded at an overnight high of 1.3090 and GBP.CAD was also higher trading at 1.7160 before pulling back on the overnight strength of the Loonie.

The Canadian Dollar had a strong night as it was helped higher by the weaker US Dollar. USD.CAD moved to open the day at the 1.3060 (0.7657) level, its best showing in a few sessions. Once again this is only a case of the Canadian Dollar reacting to the weakness in the US Dollar and it could quickly move lower if events take a dramatic turn in the US as the election results and lawsuits are finalized.

On the calendar today we get the US Federal Reserve reporting on interest rates and also the Press Conference later in the day from Fed Chair Powell. Given the uncertainty in the US election I would think Powell would prefer to pass on the press conference but given the current situation I doubt he is going to say anything that will rile the market. For the most part I think it will be a non-event and markets will wait for the final results of the election.