US Dollar index descends as the rising covid cases make consumer activity struggle

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

US Dollar         1.3025-1.3125

Euro                 1.5500-1.5600

Sterling            1.7300-1.7400

The US Dollar index is marginally weaker this morning as the growth in virus cases in the US seems to be weighing on consumer activity. Yesterday saw the US Retail Sales report for rise by only 0.3% after the September number was shown to have dropped to as well when the final tally came in. With the lack of progress on a stimulus package for the US consumer and a lame duck administration, things can only get worse with the US economy as the virus count and further State lockdowns increase.

The Canadian Dollar continues to range trade around the 1.3100 (0.7634) level as it moved back and forth several times during the night and opens the day at the 1.3070 (0.7651). Again, there is nothing new to report on the Loonie so look for it to continue to range trade until we see further developments south of the border.

We do get the Canadian inflation report today and it is expected to come inline with the Bank of Canada expectation so it is unlikely that it will move the needle on the Loonie very much. Stocks in the US are set to open a little higher so we may see the US Dollar fall back a little if they do continue higher throughout the day.