Lack of a stimulus deal pushes back investors' plans in the US

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

US Dollar         1.2775-1.2875

Euro                 1.5500-1.5600

Sterling            1.7000-1.7100

The US Dollar index is marginally higher this morning in a quiet overnight session. Global Stock markets have given back some of their recent gains overnight as the lack of a stimulus deal to help the US economy continues to give pause to investors as to the pace of a US recovery despite the rollout of the vaccines.

The EU and the UK continue to draw out the Brexit negotiations right up to the last minute with Prime Minister Johnson flying to Brussels to try and hammer out a deal. Sterling has pulled back a little from yesterday's losses but the possibility of the UK leaving the EU without a trade deal looks to be growing as it is reported that large differences still remain in place.

The Canadian Dollar held onto its recent strength with USD.CAD opening the day at the 1.2800 (0.7813) level after a quiet overnight session. The Canadian Dollar should remain range bound as there is nothing of significance on the calendar for today and markets will get set to hear from the Bank of Canada tomorrow. Depending on what the Bank says we could see volatility rise around the Loonie so it might be a good idea to look after your orders today.