USD index recovers after the Friday's drop

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

US Dollar         1.2750-1.2850

Euro                 1.5300-1.5400

Sterling            1.7450-1.7550

The US Dollar Index is marginally higher this morning in quiet overnight session as the Greenback recovered from Friday's low after the January Employment report came in much weaker than expected. Over the weekend the Biden administration officials were working the morning news circuit telling Americans how great the stimulus plan will be and that full employment will be back in 2021 if the stimulus package is big enough. We will see what gets passed in the coming weeks but every plan has its costs and this one will be no different, while it may help the economy and the stock market in the short run it will push inflation higher and have staggering borrowing costs for the government.

USD.CAD opens the day near the 1.2780 (0.7825) level after a quiet night, the Loonie did pick up some strength in Friday's trading session (despite a poor Canadian jobs report) but that was on the back of a weaker US Dollar, it looks like the Loonie will continue to range trade with a bias to weaken off a little in the coming days.

A quiet week on the economic calendar coming up with just some US inflation data topping the charts. The currency market will continue to get its direction from stocks (which are set to open higher this morning) and the passing of the stimulus package in the coming weeks.