Canadian investors await the GDP report for December

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

US Dollar         1.2625-1.2725

Euro                 1.5250-1.5350

Sterling            1.7650-1.7750

The US Dollar Index is marginally weaker this morning in what was a quiet overnight trading session. Yesterday saw stocks soar and the Greenback trade weaker as investors pushed stocks much higher on the expectation that the US Federal Reserve will let interest rates run higher for a prolonged period before taking action, the US 10-year bond market has stabilized over the last couple of sessions after a frenzied week that saw US interest rates jump to their highest level in a year. The same cannot be said for the Euro as the ECB came out this morning and said that will prevent a premature rise in interest rates which could mean a scaling back of the EU stimulus program if rates there start to rise. The Euro was a little weaker this morning on the news but certainly it is worth watching going forward.

The Canadian Dollar was able to pick up some small gains across the board overnight but certainly it was nothing to get excited about. The Loonie will be front and centre today as we get the Canadian GDP report for December where the market is expecting an annualized growth rate of 1.5%. I am not sure what effect these numbers will have as they are a couple of months old but they will give investors a snapshot of the Canadian economy before it went back into lockdown in January.