USD index falls as investors stay optimistic about the significant stimulus bill

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

US Dollar         1.2675-1.2775

Euro                 1.5400-1.5500

Sterling            1.7350-1.7450

The US Dollar Index is marginally weaker in quiet overnight trading. Investors remain optimistic that the US Congress will ultimately pass a significant stimulus bill even if the $1.9 Trillion plan proposed by Biden gets watered down in an attempt to get some bipartisan support in Congress. It may take until after all the Biden administration Cabinet positions are confirmed and the Trump impeachment trial before the plan is passed so markets may remain choppy for a while.

The Euro was struggling a bit this morning as the Italian Government is in disarray, Prime Minister Conte was forced to resign in the hopes that he could step back and form a new collation government to continue to govern the country. With the virus and Brexit the last thing the Euro needs is government upheaval so hopefully this plays out quickly.

The Canadian Dollar remains range bound trading between 1.2700 and 1.2800, with the Loonie still unable to hold onto any breaks below the 1.2700 (0.7874) level. The currency pair will most likely stay this way until we hear from the US Federal Reserve tomorrow.