USD is a little weaker this morning after a quiet overnight trading session

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

US Dollar         1.2700-1.2800

Euro                 1.5400-1.5500

Sterling            1.7300-1.7400

The US Dollar Index is marginally lower this morning in quiet overnight trading, the markets kick off the trading week in the US with the confirmation hearing for new Treasury Secretary Janet Yellen where she is expected to testify to Congress to the need for the huge stimulus plan and also a strong US Dollar policy where US Dollar rates are set by the market. It will be interesting to see just how much bi-partisan support the Biden policies receive from the Republican party going forward.

I also read this morning that the number of open long Sterling speculative positions on the Chicago Mercantile Exchange has jumped in recent days, it appears that investors are happy to put the Brexit days behind them and despite the problems it is creating with cross-border traffic it looks like the Pound is set to move forward now.

The Canadian Dollar had an up and down night, it has managed to pull back some losses from Monday against the US Dollar but it also lost ground to the other currencies as they outperformed the Loonie overnight. USD.CAD opens the day at the 1.2730 (0.7856) level as it continues to range trade. In order for the Loonie to have a significant run I think it needs to have a strong break below the 1.2650 (0.7905) level which might be difficult in the short-term.

Up today we get some Canadian trade and manufacturing data which could push the Loonie around a bit and then tomorrow the market will await the comments from the Bank of Canada on how the economy is doing.