Massive equity sell-off continues

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

US Dollar         1.2700-1.2800

Euro                 1.5000-1.5100

Sterling            1.7350-1.7450

The US Dollar Index is marginally weaker this morning as financial markets continue to react to yesterday's massive sell-off in equities around the world. Investors are worrying that the global recovery is not going to be as robust as first thought due to the Delta variant spreading around the globe, hospitalizations among the unvaccinated continue to grow with cases surging in the US and the UK where all restrictions have now been lifted. The Biden administration today came out with a travel advisory to US citizens warning them not to travel to the UK as they would be at an elevated risk of contracting the virus.

The Canadian Dollar was fairly stable overnight as it settled into its new levels above the 1.2700 (0.7874) level, it should remain steady for the short-term as long as the stock market calms down, if stocks continue their downward spiral, then look for the Loonie to lose more ground

There is nothing of note on the calendar today so all eyes will be on the performance of the stock market, Asian stocks were all lower overnight but it looks like North American stocks will open a little stronger which should help hold the Loonie steady. Volatility will be the key word and the market can change quickly so be ready with your orders if you need to do something.