Stock markets fall due to global spike in covid-19 cases

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

US Dollar         1.3150-1.3250

Euro                 1.5550-1.5650

Sterling            1.7175-1.7275

The US Dollar index is stronger this morning as investors move out of stock markets and into safe haven investments as the number of cases of the virus have dramatically increased around the world. Stock markets are down globally this morning and the Dow Jones is set to drop almost 300 points on the opening as I write. The lack of agreement on a stimulus package is not helping the US situation and markets will remain under pressure as long as the virus continues to grow.

The Canadian Dollar has felt the effects of the stronger US Dollar overnight with USD.CAD opening the day at the 1.3190 (0.7582) level, its highest level in a few sessions. The Loonie also lost ground to both the Euro and Pound so it clearly investors are not flocking to Canada as a safe haven investment at the moment.

It is a busy week on the calendar with lots of GDP data due out at the end of the week but up first on Wednesday we get the Bank of Canada Monetary Policy Report and their interest rate decision. The Canadian market will be watching closely as to see what the Bank says about the Canadian recovery but until then the Loonie will remain trading with a weaker bias as long as the virus continues to expand and investors leave the stock markets.