GBP index jumps as the UK Prime Minister makes a statement about the covid vaccine

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

US Dollar         1.2575-1.2675

Euro                 1.5275-1.5375

Sterling            1.7700-1.7800

The US Dollar Index is marginally weaker this morning as the Greenback was led lower by a jump in the British Pound. In the UK Prime Minister Johnson announced that the vaccine was proving effective in combating the virus and that he would look to open the UK economy in stages over the next four months.

The US Dollar will be under scrutiny today as Fed Chair Jerome Powell will testify before Congress on his plan for the economy. In particular markets will be looking to see if he will continue to keep his support for the economy in place despite rising inflation, yesterday saw the Bloomberg Commodity price index jump (it tracks the prices of 23 different commodities) to levels last seen in March of 2013. The price of a barrel of oil has jumped over $62 a barrel and bond yields continue to rise so clearly inflation is on the rise in the US.

The Canadian Dollar had a quiet overnight session as it opens the day at the 1.2610 (0.7930) level, the Loonie was a little stronger overnight but as of yet it has not been able to extend and sustain any significant gains on the back of the jump in commodity prices so perhaps the Loonie is overdue for a jump higher if commodity prices continue to rise.

Powell's testimony will dominate the financial markets today, Stocks are looking flat on the opening after most indices around the world were lower overnight. Markets will want reassurance that the Fed will keep the stimulus in place and encourage Congress to pass the Biden Stimulus package while letting inflation run higher.