USD index loses more strength after the comments from the new Treasury secretary

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

US Dollar         1.2650-1.2750

Euro                 1.5350-1.5450

Sterling            1.7300-1.7400

The US Dollar Index is again weaker this morning as markets react to comments from new Treasury secretary Yellen that the economy needs the $1.9 trillion stimulus package and may also need further stimulus as time goes by. The US Dollar should continue to trade with a weaker bias as we have seen in the past, at least until we see the new plan roll out and its effect on the economy.

The Canadian Dollar has picked up some strength this morning and moved back to the lower end of the 1.2700-1.2800 trading range of the last few days. Where it goes from here depends on what the Bank of Canada says later today, we are not expecting and changes to the interest rate or any additions to their bond buying program but with lockdowns in Ontario and Quebec the economy is sure to take a hit and if the Bank indicates the economy will slow dramatically in the first and second quarters then USD.CAD will move higher this afternoon. If they indicate that the economy is continuing to recover from the virus then we will see the rate fall.