Investors are concerned about rising Covid cases in the USA

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

US Dollar         1.2450-1.2550

Euro                 1.4800-1.4900

Sterling            1.7300-1.7400

The US Dollar Index is marginally higher this morning in what was a quiet overnight session. Concerns about growing virus cases once again are worrying investors as the US States with the lowest vaccination rates are once again seeing hospitalization rates go through the roof. The US saw a 47% rise in the number of cases from the previous week and the majority of them are coming Florida, Louisiana, Arkansas, Missouri and Nevada, all States with low vaccination rates.

The interesting news overnight was the Central Bank of China cutting its lending rate to it's banks to stimulate that countries pandemic recovery, apparently the Chinese recovery is not going as well as first thought, for the moment Asian stock markets have shrugged off the move but it may play out in the days to come.

The Canadian Dollar has lost some ground overnight as USD.CAD opens the day at the 1.2510 (0.7994) level with the stronger US Dollar pushing the exchange rate higher. The Loonie has held its ground against the other currencies so I think it is just range trading once again waiting for the next move.

Nothing on the calendar for today, markets are primed to get the US June inflation report tomorrow so markets should remain quiet ahead of that report.