US Dollar index gets stronger again as stock markets investors continue to be nervous about rising covid cases and the delayed stimulus plan
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3150-1.3250
Euro 1.5450-1.5550
Sterling 1.7000-1.7100
The US Dollar index is marginally stronger again this morning as markets continue to be affected by the spread of the virus globally and the inability of the US Congress to agree a stimulus plan. There appears to be trouble in paradise as the Trump's Treasury Secretary Munchin indicated if Trump and the Democrats could reach a stimulus deal the President would "lean" on the Republicans to get the deal finalized. Senate leader Mitch McConnell immediately rejected that idea showing some division with the President as they may feel he won’t be re-elected and are going it alone. The Senate is going to vote on a $500 Billion stop gap plan that if passed by the Democrats would help America get to the election in better shape. Again this lack of agreement on a stimulus plan will keep stock markets nervous and help push the US Dollar higher.
In the UK it is decision day as Prime Minister Johnson is set to announce whether the UK will continue to negotiate with the EU on the Brexit deal or break off the talks and start planning for a "No Deal Brexit". If the latter happens then look for the Pound to get hit hard.
USD.CAD is marginally lower this morning, the currency pair opens the day at the 1.3190 (0.7581) level but that was after it traded an an overnight high of 1.3255 (0.7544). The Loonie has held its own against the Euro and picked up some strength against the Pound.
On the calendar for today we get the US Retail Sales report for September which I don't think markets will be all that concerned with. US Jobless claims yesterday showed the employment picture is getting worse in the US so markets will continue to watch the rise in virus cases and for any possible stimulus agreements coming out of Washington.
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3550-1.3790
Euro 1.5850-1.6100
Sterling 1.8300-1.8560
Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.2900-1.3000
Euro 1.3150-1.3250
Sterling 1.5150-1.5250
Canadian Dollar is often referred to as "The Loonie", because of the loon bird that's featured on the $1 coin. In fact, this nickname became so popular that the Royal Canadian Mint, the coin manufacturer, trademarked it in 2006.
The Loonie was introduced in 1987 as a replacement for a paper dollar. For the most part, it was done as a cost-saving measure. The very first 11-sided Loonie coin was designed by a Canadian artist Robert-Ralph Carmichael.
