US Dollar continues to lose its strength

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

US Dollar         1.2650-1.2750

Euro                 1.5500-1.5600

Sterling            1.7250-1.7350

The US Dollar index is again weaker this morning as stocks are higher on continued optimism that the US Congress will get agreement on a $900 Billion Covid-19 relief plan. If passed this agreement will come at the very last minute as the US Government is about to shutdown as it no longer has enough money to operate, if a deal is announced we should see stocks jump even further and the US Dollar weaken more.

Markets were also buoyed by comments from the Federal Reserve which said yesterday that interest rates will remain low and the Central Bank will continue to provide the economy with stimulus until employment and growth rebound and start to grow once again.

The Pound is also higher with GBP.USD reaching a new overnight high of 1.3620 before falling back a little early this morning, the reports coming out of the Brexit negotiations say that a deal is close with only fishing rights left to be finished. If a deal is reached then you will also see the Pound jump further along with stock markets in the UK and EU.

The Canadian Dollar had a mixed evening as it is stronger against the US Dollar but marginally weaker against the other currencies. USD.CAD opens the day at the low end of the 1.2700-1.2800 range, each time it has attempted to trade lower in recent days from these levels it has bounced back higher so the Loonie will need a good push to break through and establish a new range. Further US Dollar weakness and stronger stocks should help that in the days ahead.

Just some US Secondary data on tap for today, markets in the next couple of sessions will continue to focus on stimulus talks out of Congress and on-going Brexit negotiations, resolution of those two events should lead to further US Dollar weakness.