Relationship between China and the rest of world is a growing concern for stock market investors

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

US Dollar         1.2200-1.2300

Euro                 1.4700-1.4800

Sterling            1.7000-1.7100

The US Dollar Index is weaker this morning as global demand for stocks continues around the world. In the UK, the Bank of England announced that while keeping interest rates at 0.1% they would slightly scale back their stimulus program and expect the UK economy to grow by 7.25% up from their initial prediction of 5%.

Trade tensions with China seem to be a dominating theme this morning, the Biden administration said they would continue the work that the Trump administration did on tariffs, the EU announced they would not ratify an investment deal with China as long as Chinese individuals involved in the deal were sanctioned and finally the Australian Dollar fell significantly at one point overnight as that country announced it would stop trade dialogue with China. China vs the world will be a growing concern for markets moving forward.

The Canadian Dollar was able to recover its losses from Monday as USD.CAD opens the day at the 1.2240 (0.8170) level, down from its highest level of 1.2345 (0.8100) on Tuesday. Overall, it was a good night for the Loonie as it was also able to pick up some gains against the Euro and Pound and sit should be able to hold onto these gains heading into Friday's jobs numbers.

Nothing of note on the calendar today, North American markets will get setup for the US and Canadian Employment reports tomorrow.