USD.CAD holds 1.2400 level

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

US Dollar             1.2350-1.2450

Euro                     1.4350-1.4450

Sterling                1.6900-1.7000

The US Dollar index is marginally lower this morning but that is only after a strong day yesterday that saw the index reach levels last seen in mid-October. Markets are looking to see what the Central Banks are going to do this week, first up is the Federal Reserve tomorrow followed by the Bank of England on Thursday. Last night saw the Australian Reserve Bank come out with a more dovish view on their economy, they removed their target for interest rate yields and the AUD/USD dropped quite a bit.

The Canadian Dollar had a tough day yesterday as USD.CAD jumped over 50 points to trade back above the 1.2400 (0.8065) level for the first time in a few days. It looks like the run that the Loonie was on is now over and the currency pair will remain range bound ahead of its next bug move. The Loonie should remain near the 1.2400 level ahead of tomorrow's Fed announcement.

Nothing of note on the calendar today, The US Dollar should remain supported as markets will continue to monitor world leader comments from the COP26 to see if any decisions on climate change will affect markets in the short-term.