Investors see direct correlation between Covid cases and USD value

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

US Dollar              1.2500-1.2600

Euro                       1.4700-1.4800

Sterling                 1.7350-1.7450

The US Dollar Index is mixed this morning in what was a quiet overnight session. Stocks are flat as the report from the Untied Nations on climate change seemed to have garnered most of news overnight, markets remain very concerned with the spreading Delta variant as it moves around the globe.

The Canadian Dollar bounced around overnight but staying within the recent range, USD.CAD opens the day at the 1.2560 (0.7962) level so right near where we started yesterday. Stocks are looking flat on the opening and there is nothing on the calendar to think the Loonie will move out of the recent range, tomorrow we may get some fireworks as we get the US Inflation report for July which is expected yet again to show a small increase in the inflation rate.

For today keep an eye on the number of virus cases in the US, if they continue to grow above the 100K+ a day number you may see stocks fall off and the US Dollar continue to move higher.