USD index weakens as investors stop overrating the danger of Omicron variant

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

US Dollar             1.2750-1.2850

Euro                     1.4400-1.4500

Sterling                1.6950-1.7050

The US Dollar index is marginally weaker this morning as the markets reacted to positive news about the Omicron variant of the virus. Over the weekend Dr. Fauci commented that while the virus is much more transmissible that the other versions the early signs coming out of South Africa are that the infection is not as severe as first feared. The Dollar gave back some gains and high-risk assets like Bitcoin took a big tumble, in Asia it was not all good news as stocks there were lower on developments in China where the Government continues to put pressure on their tech sector to place more controls over it. Stocks did recover in Europe and they look set to open higher in North America but as we saw on Friday that can turn around quickly

The Canadian Dollar has fared quite well as the currency pair is off its overnight highs and opens the day near the 1.2800 (0.7813) level, the Loonie also made some gains against the other currencies so overall a positive start to the week.

The highlight on the calendar will be the Bank of Canada interest rate decision on Wednesday and the US inflation rate for November on Friday. Ahead of these reports keep an eye on US/Russian comments over Ukraine, it certainly is shaping up that Putin wants to test the West.