Big drop in global stocks hits US Dollar index

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

US Dollar         1.2450-1.2550

Euro                 1.4800-1.4900

Sterling            1.7250-1.7350

The US Dollar Index is weaker this morning as financial markets react to a big drop in global stocks yesterday. Fears of the Delta and new Lambda variants spreading through Asia are worrying investors that the recovery in the Far East may not be as quick as initially thought. I think this will continue into the US as the new variants will push case loads in countries that are not getting a high enough vaccination rate like the US South so markets should remain volatile as the months go by.

The pre-employment report Canadian Dollar is trading at 1.2490 (0.8006) down from its high yesterday of 1.2585 0.(7946) which is the currency pairs highest level since March. For the Employment report we are expecting a loss of 68K jobs last month which is a bit discouraging as the country was coming out of lockdown.

Post Employment report

The Canadian Economy created 230K new jobs last month but all of them were in the part-time sector as full-time employment fell 33K. At the moment the Canadian Dollar is rallying as USD.CAD has dropped to trade at 1.2475 (0.8016), given that full-time employment is not that great I would not expect the Loonie to rally much further today.