Growing covid cases and potential lockdowns in the US stop American Dollar from growing

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

US Dollar         1.3025-1.3125

Euro                 1.5500-1.5600

Sterling            1.7300-1.7400

The US Dollar index is marginally weaker this morning as the growth of the virus in the US and what the ensuing new US State lockdowns will do to the economy in the short-term is outweighing the benefit stocks were seeing from vaccine development. Trump continues to try and hold onto power at the same time has given up on fighting the virus, if ever a legal proceeding could be brought against a sitting President for dereliction of duty it would be his lack of a response to the outbreak of the virus.

USD.CAD is marginally stronger this morning as USD.CAD opens the day at the 1.3080 (0.7645) level down from yesterday's high of 1.3120 (0.7622). Once again there is nothing on the domestic front that is helping the Loonie at the moment but there are ongoing discussions within OPEC that may limit scheduled production increases which may drive the price of oil a bit higher and the Loonie could see some benefit. Ahead of that, USD.CAD will continue to be at the mercy of developments South of the border.

We do get some Canadian Wholesale Sales data for October this morning but I doubt it will move the market all that much. I also read a report from Citi Bank this morning that makes their case that the US Dollar Index could drop as much as 20% next year as vaccine deployment comes on line and global economies start to improve. If that is true then it is not unconceivable to see USD.CAD in and around the 1.2500 level at some point next year but it will all depend on how the Canadian economy recovers.