CAD might be affected by the Canadian Inflation report that's due today

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

US Dollar         1.3100-1.3200

Euro                 1.5500-1.5600

Sterling            1.7050-1.7150

The US Dollar index has fallen to a one-month low in a quiet overnight session as there appears to be some optimism that that Congress will agree a new stimulus bill that will be passed before the election. While there is much opposition from the Republicans to the size of the plan the Democrats are proposing Trump is desperate to get some positive news to help his failing campaign so it is likely that he will put pressure on the Republicans to get a deal done. If this happens you should see stocks rebound and the US Dollar trade weaker.

The Canadian Dollar was able to pick up some small gains against the US Dollar as it opens the day at 1.3110 (0.7628) level, as we have seen in the past USD.CAD is range trading at the moment and just following events south of the border. I got my calendar days mixed up yesterday and the Canadian Inflation report is actually due out today so we may see some movement in the Loonie this morning. I will be interested to read how the Bank of Canada looks at this report and how the Dollar reacts as research is pointing to the fact that the change in Canadians spending patterns brought on by the pandemic may be influencing inflation in very different ways than in the past. This change in spending may lead the Bank to accept higher inflation over the medium so they can keep supporting the economy with lower interest rates.