USD index continues to fluctuate as Biden's economic fight carries on

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

US Dollar         1.2675-1.2775

Euro                 1.5400-1.5500

Sterling            1.7300-1.7400

The US Dollar Index is stronger this morning as the US Dollar seems to be caught in the middle of a vicious economic fight. On one hand you have investors who want to see the roll-out of the massive stimulus program that has been proposed by Biden and on the other hand such a large borrowing program will surely cause interest rates in the US to rise helping to push the US Dollar higher. From everything I have read the market is still expecting a weaker US Dollar and a stronger economy later this year but it remains to be seen what effect the large spending program will have on the Dollar going forward.

The Canadian Dollar is much weaker this morning as USD.CAD moved from it's low from yesterday of 1.2610 (0.7930) to trade as high as 1.2715 (0.7865) as I write. Even a stronger than expected Canadian Retail Sales report for November this morning could not help the Loonie at the moment as it still continues to trade at the mercy of the US Dollar. Stocks are pointing lower to start the day, if they drop significantly look for the Loonie to remain weak throughout the day.