US Dollar continues to weaken as investors become more optimistic about the stock markets

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

US Dollar         1.3200-1.3300

Euro                 1.5600-1.5700

Sterling            1.7125-1.7225

The US Dollar index is marginally weaker this morning as investor money moved away from safe haven assets on signs that Trump's return to the White House may have reduced the risks of a chaotic final month of the election. In addition, the House of Representatives and the Senate continue to argue on a stimulus package for the US economy and in the UK negotiations are ongoing in an attempt to get a final deal on Brexit. Stocks are set to open a little higher so markets are remaining calm ahead of the next shoe to drop.

The Canadian Dollar recovered a little overnight and USD.CAD opens the day at 1.3255 (0.7544) which is its lowest level in a few days. Once again the Loonie continues to react to global events and there is very little international attention being paid to the Loonie. Look for USD.CAD to remain range bound ahead of the Canadian Employment report on Friday.

We get some US and Canadian trade data today but for the most part markets will be listening to Fed Chair Powell's speech this afternoon to see what he says about the US recovery and if he drops and policy hints. Ahead of the speech FX markets should remain stable with the US Dollar watching reports on Trump's health to get direction on it's next move.