USD.CAD reached a two-year low for the currency pair

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

US Dollar         1.2850-1.2950

Euro                 1.5650-1.5750

Sterling            1.7300-1.7400

The US Dollar index is again weaker this morning as the market investors continue to pile into the stocks on the back of the most recent vaccine news and renewed optimism that a stimulus deal will be struck in the US Congress which can be included in the year-ending spending bill.

Sterling had a strong night with GBP.USD rising to trade at 1.3450 despite French government officials making the statement that they may veto any EU-UK trade deal if they don't like the terms. As Brexit negotiations come down to their last days this may be a wrinkle that the deal does not need.

USD.CAD continues to move lower as it opens the day at the 1.2900 (0.7752) which represents a two-year low for the currency pair. As we have seen lately this is not a case of a strong performance by the Canadian Dollar but one of a much weaker US Dollar as investors move into riskier assets like stocks, this is borne out by the fact that the Loonie lost considerable ground to both the Euro and Pound overnight so gains against the US Dollar can be fleeting at the best.

There was some news coming out of the OPEC meeting overnight that Oil Ministers may be able to reach an accord on production for next year, if they do you may see a temporary bump higher for the Loonie along with a jump in the oil price.

Nothing of note on the calendar for today, markets will get ready for tomorrow's US and Canadian November Employment reports. Ahead of those look for stronger stock markets and a slowly increasing Canadian Dollar against its Southern neighbour.