US Dollar index falls as stock markets continue showing the record-breaking growth

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

US Dollar         1.2750-1.2850

Euro                 1.5500-1.5600

Sterling            1.7250-1.7350

The US Dollar index is marginally weaker this morning as stocks continue to move forward and break records. This morning, it is growing optimism of a US stimulus deal that would get some money flowing to Americans by the end of the year. In the UK, the Pound optimism also grows as there is further talks of a Brexit deal, GPB.USD reached a high of 1.3548 this morning which is the currency pairs highest levels in over two years.

Not a great night for the Canadian Dollar as it has lost some ground on several fronts, USD.CAD remains range bound in the 1.2700-1.2800 range but the pair opens the day at the higher end of the range at 1.2760 (0.7837), the exchange pair briefly traded below 1.2700 (0.7874) during the night but it was not able to hold that strength. With the big overnight jump in both the Euro and Pound we see the Loonie losing ground to those currencies as well so a tough start to the day for our Dollar. I still think the prognosis for a stronger Canadian Dollar is in place but there will always be bumps in the road.

A busy day on the calendar today as we get Canadian inflation data followed by the US Federal Reserve interest rate announcement this afternoon. The market is not expecting any changes to their policy but I am sure their comments will be quite negative as they will be calling for more stimulus from the Federal Government, it could end up being quite a volatile day on the currency markets.