USD is weaker today as markets react to the situation in Georgia

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

US Dollar         1.2650-1.2750

Euro                 1.5600-1.5700

Sterling            1.7250-1.7350

The US Dollar Index is weaker this morning as markets digest what looks to be a Democratic sweep of the two Senate run-off elections in Georgia. Both races are very close and there will be lots of recounts and court challenges before we get to the end but if the results hold it should be overall US Dollar negative and a positive for Stock Markets. President Biden would have a clear path to the Democratic agenda which would mean massive stimulus for the US economy but also massive deficits for the US economy which will cause problems down the road.

The Canadian Dollar is flat overnight but that in only after a strong day yesterday that saw USD.CAD drop back below the 1.2700 (0.7874) level as the US Dollar was weaker, USD.CAD opens the day at the 1.2685 (0.7883) level and the Loonie has also picked up some small gains against the Euro and Pound so it continues its strong start to the year. The Loonie did pick up some small gains as Saudi Arabia announced unilateral oil production cuts which pushed the oil price a little higher, I don't think the oil price will be a long-term help to the Loonie but over the next few weeks it may help.

With nothing on the calendar today all investor eyes will be on the Senate race in Georgia and then the crap show that will be the congressional approval of President-Elect Biden's confirmation as the next President. Some 30 thousand of Trumps most fanatical supporters will be in Washington to protest him losing the election and the expectation of violence is growing. I don't think it will have much effect on the Dollar has Biden will be confirmed but it will be a sad commentary on the state of US politics.