Canadian Dollar takes advantage of the falling USD and Euro

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

US Dollar         1.2550-1.2650

Euro                 1.4950-1.5050

Sterling            1.7450-1.7550

The US Dollar Index is weaker this morning as stocks continue to move forward on the expectation that the large US stimulus package will pass through the House of Representatives at some point this week and then head to Biden for his signature. Interest rates remain of concern to investors as the 10-year yield remains very active but for the moment is not running higher which it may do once the stimulus package works its way through the US economy.

The Canadian Dollar has done quite well over the last couple of sessions, USD.CAD is still range bound in the 1.2600-1.2700 trading range however the currency pair does open the day right at the bottom of the range and with further weakness in the US Dollar it looks like it will test the 1.2600 (0.7937) level at some point today. In addition, the Loonie has done very well against both the Euro and Pound as those currency pairs are significantly lower than they were last week. It will be a busy week for the Loonie as the Canadian market get ready for the Bank of Canada interest rate announcement tomorrow and markets will be looking for their comments on the possibility of higher interest rates here in Canada going forward.