$900 billion stimulus bill helps stock markets to get back on track

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

US Dollar         1.2825-1.2925

Euro                 1.5700-1.5800

Sterling            1.7200-1.7300

The US Dollar index is marginally weaker this morning as markets are weighing the development of a new strain of the virus against the prospects of growth in the US economy after the US Congress passed the new stimulus bill. Stocks rebounded from a weak opening and closed the day slightly higher as the $900+ billion-dollar program will put money into the hands of Americans fairly quickly as long as Trump signs it today.

In the UK, the Pound is actually a little stronger this morning as better than expected GDP numbers helped to push the Pound higher in the last hour but I imagine that will not last long as the country is virtually isolated at the moment as the borders to the UK have been closed for the next few days while the world deals with the outbreak of a new strain of the virus in the UK. In addition, the latest attempt at breaking the Brexit impasse has failed and the possibility of a no-deal Brexit now looks almost certain.

The Canadian Dollar opens the day a little stronger against the US Dollar as USD.CAD trades at the 1.2860 (0.7776) level reversing some of the losses from yesterday that saw the currency pair trade as high as 1.2950 (0.7722). Again, the Canadian Dollar continues to be led by developments in the US and around the world as there is little domestic influence being exerted on our dollar at the moment. The month-long lockdown in Ontario that was announced yesterday will not do the Loonie any favours as it will have a big effect on the 4th quarter GDP numbers, it will be interesting to see if any other provinces follow suit.

Up today we get the US 3rd Quarter GDP reading which will show a significant gain for the US economy over the quarter but for the most part I don't think it will have much affect on the currency today as markets will want to focus on what effect the growth of the virus will have going forward and how the stimulus plan will help. Stocks should remain volatile over the Christmas holidays and the Canadian Dollar will continue to be bashed around.