USD index falls again

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

US Dollar         1.2650-1.2750

Euro                 1.5350-1.5450

Sterling            1.7250-1.7350

The US Dollar Index is marginally lower today but that was after a good run for the Greenback over the last couple of days. Markets have pretty much ignored the spectacle unfolding in Washington but are now focusing on the Biden's administrations plan to unveil a $2 Trillion stimulus package that will include the $2,000 cheques for Americans once they are sworn in next week. Stock markets continue to rise on the expectation that the plan will push the economy into recovery mode while the expectation of interest rates rising falling away.

The Canadian Dollar has benefitted from the weaker Dollar as USD.CAD once again opens below the 1.2700 (0.7874) level after touching the 1.2670 (07893) level at one point overnight. The Loonie also picked up some significant gains against both the Euro and Pound so it maybe time for buyers of those currencies to look at making some short-term purchases, we have seen how quickly the Loonie can give back those gains in the past.

Markets should be relatively calm today as the calendar is quiet, currency markets will take their lead once again from equities which are pointing higher to start the day.