European and Asian countries will not be able to rely on the US as a strong trading partner

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

US Dollar         1.3025-1.3125

Euro                 1.5450-1.5550

Sterling            1.7200-1.7300

The US Dollar index is marginally weaker this morning as positive economic data and a new trade deal both in Asia have helped to push Stocks higher and the US Dollar a bit lower. One of the lasting effects of the Trump administration will be the fact that other countries will now not be able to rely on the US as a strong trading partner, even if over the next four years the Biden administration works well with other countries the world will only be one election away from the Republicans winning the White House and going back to "America First" policies. To that end, Asian countries have signed a comprehensive trade pact this morning that has helped push stocks higher and in France, President Macron said he cannot allow his country to rely on the United States as much as they have in the past.

USD.CAD opens the day at the 1.3080 (0.7645) level as the Loonie was able to take a small advantage of the weaker US Dollar. The Loonie also picked up some small gains against both the Euro and Pound so at least for a short while the Canadian Dollar is on the uptick.

There is lots of secondary data out of both the US and Canada this week, for the most part markets will be focusing on the growing virus cases in both the US and Canada and to see that the transition of the US Government eventually goes smoother than it is right now. Markets were also helped higher by the fact the Biden virus team said they do not favour a total lockdown of the US economy but rather targeted action to areas that need it the most.