USD index falls as markets ignore the chaos that happens in Washington

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

US Dollar         1.2650-1.2750

Euro                 1.5550-1.5650

Sterling            1.7250-1.7350

The US Dollar Index is marginally weaker this morning as for the most part markets ignored the carnage that was going on in Washington yesterday but instead focused on the Democratic Senate race sweep in Georgia that will lead to a Democratic controlled Senate and should lead to more stimulus to support the economy in the coming days and weeks.

The Canadian Dollar once again gave back some strength to the US Dollar as USD.CAD again opens the day above the 1.2700 (0.7874) level, the currency pair seems to lack direction at the moment as even though the Loonie is holding onto its strength in the new year it is not making any further gains which given the weakness in the US Dollar and the rise in stock markets is a bit puzzling.

Canadian Dollar trading may get some volatility surrounding the Trade Balance report for November but for the most part markets should remain quiet ahead of tomorrow's Employment reports.