USD index gets pushed lower by rising equity markets

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

US Dollar             1.2575-1.2675

Euro                     1.4900-1.5000

Sterling                1.7450-1.7550

The US Dollar Index is lower this morning as equity markets are on the rise despite some overnight doom and gloom comments from Goldman Sachs and Deutsche Bank that US stocks may be reaching an over valuation state and a big correction may be in the works. For now, the mood among US investors seems to be positive as an overnight call between American President Biden and Chinese Premier Jinping seems to have been well received by the financial markets. Any potential thawing of US/China relations can only be seen as a positive for markets.

The Canadian Dollar was able to take advantage of the weaker US Dollar as USD.CAD opens the day near the 1.2600 (0.7937) level. All Canadian Dollar traders will be looking to todays Canadian August Employment report where the market is expecting 100K new jobs to have been created. A strong report should push the USD.CAD below the 1.2600 level and if it comes in much worse than expected look for the Loonie to take a beating.