Canadian Dollar continues to take advantage of the falling USD index

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

US Dollar         1.2700-1.2800

Euro                 1.5400-1.5500

Sterling            1.6900-1.7000

The US Dollar index is marginally weaker this morning and stocks are pointing a little lower to start the day as negotiations seem to be the watch word of the day. In the UK Sterling is a bit weaker as last night's Dinner between Johnson and van der Leyen did nothing more than push the deadline for a Brexit deal until Sunday to allow talks to continue. Meanwhile in the US Congress continues to negotiate a new stimulus package while the number of virus cases soars and hospitalization rates continue to reach record levels.

The Canadian Dollar continues to take advantage of the weaker US Dollar with USD.CAD dropping to trade as low as 1.2760 (0.7837) this morning. The loonie also made significant gains against the weaker Euro and Pound so overall a good night for the Loonie. Yesterday the Bank of Canada kept its interest rate policy the same and basically indicated that interest rates in Canada will remain low until at least 2023, like most countries Canada is pinning its hopes of a recovery on the effectiveness of the vaccine so we will see what next year brings.

Up today we get the US inflation rate for November but I would not expect much market reaction. Currency traders will continue to move in step with the stock markets and if they continue to jump then we should see the US Dollar remain weak.