Euro falls to its lowest level since 2017

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

US Dollar             1.2800-1.2900

Euro                     1.3550-1.3650

Sterling                1.6100-1.6200

WTI Oil (opening level) $101.60 (Oil price is about $2 higher from yesterday's opening rate)

The US Dollar Index is much higher this morning as the stock market was crushed yesterday on the announcement that Russia would cut off gas supplies to Bulgaria and Poland and on growing concerns about further lockdowns in China hurting the global economy. The Dollar was led higher by a big drop in the Euro, EURO.USD trades at 1.0580 as I write and that is its lowest level since 2017. Even the other safe haven currencies like the Yen and Swiss Franc all lost ground to the US Dollar which continues its strong run.

The Canadian Dollar lost over 100 points to the US Dollar yesterday and USD.CAD opens the day at the 1.2825 (0.7797) level so once again the Loonie can not get any consistent forward momentum against the US Dollar, it did however make some small gains against the Pound and Euro so not a total disaster for our Dollar.

Most stock markets have rebounded a little overnight and the Dow Jones is pointing higher at the moment so we may see the Loonie make back some early gains in the morning session but overall I think volatility in the stock market will remain in place and the US Dollar will continue to benefit from the uncertainty.