USD index skyrockets

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

US Dollar         1.2750-1.2850

Euro                 1.5000-1.5100

Sterling            1.7450-1.7550

The US Dollar Index is much higher since my last update on Thursday as the number of virus cases around the world continues to grow amid growth in the Delta variant. EUR.USD fell to trade to 1.1770 which is the currency pair lowest in months, GBP.USD dropped to trade at 1.3700 as stock markets around the world are all lower on fears that the virus will once again slow the economic recovery. As I write the Dow Jones is expected to open down some 432 points which will lead to a very tough day on the markets, be prepared for a further jump in the US Dollar.

The Canadian Dollar has been hit hard by the stronger Greenback as USD.CAD opens the week above the 1.2775 (0.7828) level, the last time it was this weak was in January of this year. The Loonie also traded weaker on the news that OPEC has agreed to an increase to production by some 400K barrels a day, the WTI oil price dropped to near $69 so any help the Loonie was getting from a strong oil price has now disappeared from the immediate future, look for the Loonie to trade weaker in the short-term as the US Dollar remains strong.

A quiet week on the calendar so the virus news will dominate the market, I think governments are getting tired in fighting this situation so now most are going to let it run its course, we could be in for a very tough few months.