USD index rises as the virus creates instability in global economy once again

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

US Dollar             1.2600-1.2700

Euro                     1.4200-1.4300

Sterling                1.6950-1.7050

The US Dollar index is trending higher this morning as the virus once again sweeps through Europe and is creating social unrest that threatens the economy. The US Dollar also continues to garner support from the expectation that the US Federal Reserve will be forced to cut back its stimulus program faster than first thought and eventually increase interest rates sooner than expected to combat the severe inflation that is running through the economy. On Wednesday the market gets the minutes from the last Federal Reserve meeting so we will get some understanding of what the Fed members are thinking and traders will be able to form some new expectations.

The Canadian Dollar opens the week a little weaker against the US Dollar but it is holding its own against the other currencies. USD.CAD is down from its overnight highs and opens the day at the 1.2635 (0.7915) level, it is quiet week on the Canadian calendar so unless we get some surprises from the release of the Fed minutes USD.CAD should remain range bound thorough the Thanksgiving holiday.