US Dollar depreciates as stock markets seem to be satisfied with the election results

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

US Dollar         1.2950-1.3050

Euro                 1.5475-1.5575

Sterling            1.7075-1.7175

The US Dollar index is significantly weaker this morning as stock markets are soaring around the world on the announcement that Joe Biden has reached the 270 Electoral College votes that he needs to become the next president. Markets do not seem at all nervous with the challenges that Trump is blustering about as there does not seem to be any systemic fraud that would affect the outcome of the election. As I write, the Dow Jones index in the US is set to open 1,270 (5+%) points higher and may go higher throughout the day putting further pressure on the US Dollar.

USD.CAD opens the day at the 1.2975 (0.7707) level as the Loonie was able to take advantage of the weaker dollar caused by the run to riskier investments with stock markets soaring. Again, I need to point out that this is not a Canadian story, (in fact the Canadian Oct Jobs report was a little lower than expectation on Friday) so the Loonie can reverse course at anytime, US Dollar buyers need to keep this in mind.

It is a quiet week on the calendar this week with the highlight being US Inflation data on Thursday. Ahead of that markets will be looking for a peaceful transition of power and the outline of a stimulus package that will pass the Republican led Senate from the incoming Democrats.