USD index rises as Asian stock markets fall significantly

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

US Dollar         1.2350-1.2450

Euro                 1.4650-1.4750

Sterling            1.7100-1.7200

The US Dollar index is higher this morning as Asian stock markets were lower as the number of virus cases in that part of the world start to spike again. In Australia, over half the population is again in lockdown as the number of cases increases, Malaysia has seen a record number of cases and in Europe more countries are putting the UK back on a travel ban as the number of Delta variant cases continues to rise. Markets are looking at this and once again hitting travel related stocks as there is a real chance that the summer travel period could be lost. ECB President Lagarde gives a speech later today on the economy and I am sure that she will talk about this worrying situation, as long as the virus remains strong and increasing the US Dollar will benefit.

The Canadian Dollar had a tough day against the US Dollar but it managed to hold its own against the other currencies. USD.CAD opens the day at the 1.2370 (0.8084) level up almost 100 points in the last 24 hours, once again it is all US Dollar strength and the Loonie is just reacting. I would be very surprised if it went much higher today as it has come a long way since the 1.2000 days of a few weeks ago, US Dollar sellers may want to take advantage of this jump and place some orders.

Other than US Consumer Confidence for June the calendar is quiet, stocks are looking to open on a positive note so the Loonie may pull back some of its losses but don't expect any big moves.