US Dollar index continues to depreciate

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

US Dollar         1.2700-1.2800

Euro                 1.5450-1.5550

Sterling            1.7100-1.7200

The US Dollar index is weaker to start the new North American trading week. In the UK, the Pound is higher as it was announced that Brexit negotiations would continue past Sunday's deadline in the hopes of getting a deal. In the US the number of virus cases and the number of deaths continue to grow just as the vaccine program is set to be rolled out, Stock markets are opening the day stronger in reaction to the vaccine rollout and further talks in Congress detailing the on and off again stimulus program which if passed would push stocks much higher and the US Dollar weaker.

The Canadian Dollar opens the new week holding onto its recent strength with USD.CAD opening at the 1.2740 (0.7849) level, the exchange rate seems to be forming a new base at these levels so it will take a real push for it to break below the 1.2700 (0.7874) level in the near future. The Loonie lost considerable ground to the British Pound as the extension of the Brexit negotiations pushed most currencies lower against the Pound, this will be quickly reversed if negotiations are finally called off and both parties proceed without a trade deal.

Nothing on the calendar for today, look for USD.CAD to stay above the 1.2700 level for a little while longer as event play out South of the Border and in both the UK and Brussels.