USD index continues to fall as the world waits for the more stimulus plan details from the Biden administration

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

US Dollar         1.2600-1.2700

Euro                 1.5300-1.5400

Sterling            1.7300-1.7400

The US Dollar Index is weaker this morning as the world awaits word from the new Biden administration (I just love the sound of that statement) as to the scale and scope of their proposed stimulus program. Stocks continue to move higher and investors seem to be optimistic that the US economy will grow in the second half of the year as the virus releases its grip on the economy.

In Europe, the ECB released their latest interest rate announcement in which they kept interest rates at 0% and pledged to stand ready to help the EU economy as needed going forward. This was pretty much a neutral statement and the Euro remained strong as a result of the weaker US Dollar.

The Canadian Dollar had a strong day after yesterday's Bank of Canada announcement that there would be (as expected) no change to the interest rate policy but also that after a tough first quarter the economy would return to growth in the second half of the year and have a strong year in 2022. The Bank committed to a low interest environment until at least 2023 and when interest rates do start to rise it will be on a gradual basis as not to shock the economy. On the report USD.CAD fell from a high of 1.2700 (0.7874) to trade as low as 1.2615 (0.7927) where we basically open the day today. I will be interested to see if the Loonie can extend that strength and finally break below the 1.2600 (0.7937) level.

The markets will be watching closely the weekly jobless claims numbers of the States this morning to see just how bad the US employment picture is getting, if the number is really bad you may see a jump in the US Dollar and a drop-off in stocks.