Stronger American dollar and a falling oil price pushed the Loonie lower

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

US Dollar             1.2700-1.2800

Euro                     1.4350-1.4450

Sterling                1.6900-1.7000

The US Dollar index is marginally stronger this morning as markets get set for central bank week where some 20 central banks around the world will be reporting their latest interest rate policy. Markets will be watching the diverging views on these institutions as more and more now will look to start increasing interest rates to fight inflation while others still see the need for stimulus to keep their economies strong.

The big mover over night was the British Pound as Prime Minister Johnson announced that the UK faces a "tidal wave" of Omicron infections by the end of the year and a research report published this morning said there could be a further 75,000 deaths in the UK this winter. Sterling initially crashed off on this announcement but has recovered somewhat as North America starts off the week.

The Canadian Dollar had another tough night as USD.CAD opens the week at the 1.2760 (0.7837) level, a combination of the stronger US Dollar and a falling oil price helped to push the Loonie lower. The Canadian Dollar also lost ground to the other currencies so clearly the Loonie starts the week on a sour note.

Nothing on the calendar of note for today, stocks are pointing to a quiet opening so I don't expect much movement in the currency markets. Wednesday this week will be a busy day as we get the Canadian inflation rate for November and later that day, we get the US Federal Reserve interest rate announcement.