American dollar skyrockets as stocks sell-off

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

US Dollar             1.2700-1.2800

Euro                     1.3650-1.3750

Sterling                1.6200-1.6300

WTI Oil (opening level) $97.20 (Oil price is lower from Friday's close)

The US Dollar Index is much stronger as the Dollar soared on the big drop in US and Canadian Stocks on Friday. The stock market has become very worries about a global slowdown as COVID cases in China soar and there is the potential to lockdown the capital of Beijing in the coming days. Despite the Macron victory in the French Presidential election the Euro has fallen off with EURO.USD falling to a low of 1.0740 this morning from a high 1.0920 on Friday. With Stocks sent to drop another 250 points on the opening in New York this morning I won't be surprised if the US Dollar continues to jump higher against today.

The Canadian Dollar has had a rough couple of days, on Friday we saw USD.CAD trade at 1.2460 (0.8026) and with the high inflation numbers in Canada the outlook for the Loonie was looking positive. That all changed very quickly as the stock market headed south and USD.CAD now trades near the 1.2750 (0.7843) level to stat the week. The Loonie has managed to hold its own against the British Pound but it did lose some ground to the Euro so overall we once again see that the Loonie cannot go on an extended run of strength for very long.

On the calendar today we have BOC Governor Macklin testifying before parliament today and I am sure they will be grilling him on what he expects for future interest rate hikes in Canada. For the most part today the currency market will continue to support the US Dollar and other "safe-haven" currencies as long as the stock market continues to drop as it has over the last couple of sessions.