The Loonie gets hit by a stronger USD index

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

US Dollar             1.2600-1.2700

Euro                     1.4950-1.5050

Sterling                1.7400-1.7500

The US Dollar Index is stronger this morning as markets continue to react to the poor US jobs report from last week. US interest bond yields continue to move higher and stocks continue to lose strength as the US economy is being hit hard by the Delta variant, close to 10K Americans a week are now dying from the variant and most of them are among the unvaccinated leading to continued concerns among investors about the US economy.

The Canadian Dollar has been hit hard over the last 24 hours with USD.CAD opening the day at the 1.2670 (0.7892) level, its highest level since the end of August. The Loonie continues to get pulled down by the stronger US Dollar and with the situation in the US looking grim I don't see this changing anytime soon.

We get the Bank of Canada interest rate decision today where the market is not expecting any changes to their interest rate which stands at 0.25%. If they come out and say the economic situation in Canada is growing worse then we would see USD.CAD move much higher, I really don't see a scenario where they will be upbeat on the prospects of the Canadian economy so look for the Loonie at the very least to trade a little weaker on the announcement.