Euro is hit by the third wave of Covid-19 in most European countries

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

US Dollar         1.2550-1.2650

Euro                 1.4825-1.4925

Sterling            1.7200-1.7300

The US Dollar Index is marginally stronger this morning as the Greenback has hit a four-month high against the Euro, an expanding third wave of the virus and vaccine issues across Europe have hurt the Euro and given some wind in the sails of the US Dollar. The final report of the US 4th Quarter GDP was released this morning and it showed the economy grew at a slightly better pace (4.3%) that was previously reported so that too have given the US Dollar some strength.

The Canadian Dollar and a quiet overnight session and continues to range trade within the 1.2500-1.2600 trading range, the currency pair moved back and forth overnight in about a 30-point range with no real sense of direction at the moment but considering the continued strength in the US Dollar the Loonie is not doing as badly as some of the other currencies. The container ship is still blocking the Suez Canal but the bump it caused in oil prices yesterday seems to have abated and it will likely be the weekend before the canal will re-open.

Nothing of note on tap for today, look for USD.CAD to continue to range trade with a possible test of the 1.2600 (0.7937) level at some point today