Stock markets soared after optimistic results of the new Covid vaccine testing had been announced

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

US Dollar         1.2975-1.3075

Euro                 1.5350-1.5450

Sterling            1.7200-1.7300

The US Dollar index is marginally stronger this morning but that is only after a wild day on the currency and stock markets. Yesterday saw Stock markets go crazy on the announcement by Pfizer that their vaccine tests were showing a 90% success rate in protecting people from getting the virus. Stocks soared on the opening and the Dollar fell back but as the day went on those gains in stocks were pared back and while the market finished much higher investors were slowing reeling in their euphoria on the expectation of a quick vaccine to stem the spread of COVID-19.

The Canadian Dollar has settled down this morning after a volatile day yesterday that saw USD.CAD reach a low of 1.2935 (0.7731) before moving back higher to where we open the day at 1.3035 (0.7672). This type of movement highlights my strategy from yesterday that US Dollar buyers need to be ready to take advantage of these types of moves as Canadian Dollar strength can be fleeting at best. There still may yet be room for the Loonie to strengthen but again we will need to see strong stock markets and a weak US Dollar for that to happen.

Nothing of note on the calendar today, FX markets will continue to watch the Stock Markets to get their direction and currency traders will keep an eye on the bombastic rhetoric coming from the Trump campaign as the days pass towards the Electoral College voting for the next President on December 14th.