Stock markets had their best day since March

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

US Dollar             1.2600-1.2700

Euro                     1.4250-1.4350

Sterling                1.6650-1.6750

The US Dollar index is marginally weaker this morning as stock markets had their best day since March, investors have for the moment stopped worrying about the Omicron variant as reports support the science that current vaccines seem to be able to handle it and any illness does not seem to require hospitalization in the vaccinated. Traders will now return their focus to when the US Federal Reserve will increase interest rates.

The Canadian Dollar has been able to take further advantage of the weaker Greenback and a jump in the oil price again. USD.CAD has fallen from a high yesterday of 1.2760 (0.7893) to trade this morning at 1.2640 (0.7911). With the recovery in the oil price the Loonie has been able to recover most of its losses from the time Omicron first emerged to rattle the markets.

This morning we get the Bank of Canada's last interest rate decision for 2021 and now that they have ended their bond buying program currency traders will want to know when they will start to increase interest rates here in Canada. If we get any signs today that they will jump earlier than first thought then look for the Loonie to extend some gains.