Global rise of covid cases and postponed stimulus package strengthened the USD

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

US Dollar         1.3150-1.3250

Euro                 1.5450-1.5550

Sterling            1.7050-1.7150

The US Dollar index is stronger this morning in the face of global rise in the cases of the virus and all hopes of a stimulus package before the election being swept away. Stocks have traded negative over the past couple of days and look set to fall again today as investor money is leaving the stock market and looking for safe haven investments in light of the fact that no stimulus money is going to help the US economy any time soon. In the UK the Pound remains under pressure as negotiations continue on a Brexit deal with no sign of completion any time soon.

The Canadian Dollar has lost ground to the stronger US Dollar over the last session but it has been able to hang onto its strength against the Euro and Pound. USD.CAD opens the day at the 1.3200 (0.7576) level which is the pair's highest level in a week. Once again there are no domestic factors driving the Loonie's direction at the moment, our Dollar is still being pushed around by weakness in the stock market and the current situation in the US, I think it will stay this way for a while yet.

Nothing of major importance on the calendar for today so look for USD.CAD to range trade around the 1.3200 level and we will see once again what happens south of the border.