USD index continues to fall as markets await the release of April employment report

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

US Dollar         1.2150-1.2250

Euro                 1.4700-1.4800

Sterling            1.6900-1.7000

The US Dollar Index remains at its weakest point of the week as markets await the release of April employment report where it is expected that over a million jobs were created last month proving once again that the US is leading the global recovery.

In India, the virus continues to rage out of control and is having a devastating effect on that country both in the terms of loss of life and an economic collapse. That economic collapse may also now be hurting large global companies that rely on the Indian economy for manufacturing and outsourced support staff as the countries ability to provide these services is now collapsing.

The Canadian Dollar re-established its recent rally yesterday as USD.CAD opens the day at the 1.2185 (0.8206) level, the last time the currency pair was this low was 2017 so this is an amazing run for the Loonie.

In addition to the US employment report, we also get the Canadian April report and the market is expecting a drop of 175K jobs last month as most of the country went back into lockdown. I will be interested to see how the Loonie reacts as the economy is still doing well and if the US Dollar trades weaker the Canadian Dollar may still be able to extend some gains.