USD index hits a four-month high

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

US Dollar         1.2550-1.2650

Euro                 1.4850-1.4950

Sterling            1.7200-1.7300

The US Dollar Index is again stronger this morning hitting a four-month high as the threat of an expanding third wave of the virus is hurting the Euro and Pound and potentially higher interest rates and big tax hikes in the US as proposed by the Biden administration are pushing the stock markets lower and the Greenback is gaining ground as a safe haven investment. Look for the US Dollar to remain on a strong footing over the next few weeks as all of this plays out.

The Canadian Dollar has fared quite well overnight as USD.CAD is only marginally higher as it opens the day at the 1.2570 (0.7955) level and the Loonie is actually higher against the other currencies as they all fared much worse. The so-called commodity currencies got a small boost from a jump in the oil price as of all things a ship ran aground in the Suez Canal and has shut down all traffic. The authorities have attempted to refloat the vessel but it looks like it will be closed for several days as early attempts have failed. As a good portion of the world's oil is transported through the Canal it is no wonder that investors pushed the price a little higher.

Nothing major on the calendar for today, look for continued range trading for the Loonie and a move back below the 1.2550 (0.7968) level as a possible intra-day target.