USD.CAD hits 1.2600 reaching its highest level in a week

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

US Dollar         1.2550-1.2650

Euro                 1.4950-1.5050

Sterling            1.7350-1.7450

The US Dollar Index is again marginally higher this morning as it continues it slow climb on the expectation that the combination of an ambitious vaccination plan and low interest rates will push a speedy recovery of the US economy. Strong stock markets and increased job growth would seem to bear this out and we should see further US Dollar gains in the coming months.

The Canadian Dollar lost some ground again last night and USD.CAD opens the session at the 1.2600 (0.7937) level which is its highest level in a week. The Loonie also lost some ground to the Euro once again last night so clearly our dollar is trading with a weaker bias at the moment. Once again there is nothing on the horizon that should change the prospects for the Loonie, with Ontario enhancing their lockdown tomorrow the economic prospects for the Canadian economy are not the greatest at the moment so we could see further Canadian Dollar weakness in the weeks to come.

Lots of trade data on both sides of the border today which will garner the interest of the markets but of most importance will be the release of the minutes from the last Federal Reserve meeting, traders will be looking to see if the Fed had any discussion about ending stimulus and increasing US interest rates.