Quiet night for the currency markets keeps the USD index unchanged

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

US Dollar         1.2700-1.2800

Euro                 1.5450-1.5550

Sterling            1.7000-1.7100

The US Dollar index is unchanged this morning in what was a quiet overnight trading session. News out of Washington is that there may be a stimulus compromise on a weakened package that could pass by the end of the year, this occurs as the vaccine starts to get rolled out and deaths in the US pass the 300K mark.

In the UK the Pound is marginally stronger as there are reports that there may be a deal in the Brexit negotiations that is seen as some sort of compromise, one where they agree to disagree on certain items. I am not sure how that works but we shall see in the next few days if it comes to pass and what the markets think of it.

The Canadian Dollar is firmly entrenched in the 1.2700-1.2800 range for the moment as it awaits developments South of the border. The Loonie may see some benefit in the coming weeks and months from a bump up in the oil price, OPEC looks to have come to an agreement that will help use up bloated supplies in the next year and the Chinese government reported some strong economic numbers last night that show their economic recovery is on track which should also help boost the oil price in the coming months.

We get housing data out of Canada and some secondary data out of the US today but for the most part I will be surprised if we see the Loonie break out of recent ranges, I think it would take a big move in the US Dollar for that to happen.