USD index climbs higher as Delta variant continues to spread around the world

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

US Dollar         1.2500-1.2600

Euro                 1.4800-1.4900

Sterling            1.7300-1.7400

The US Dollar Index is marginally stronger to start the week as the Delta variant continues to spread around the world among the unvaccinated and as Dr. Fauci tells Congress that the US is going in the wrong direction. Investors are increasingly worried that the growth in the virus will again slow the global economy and delay the economic recovery in most countries.

The markets also have an eye on the trade talks that are ongoing this week between China and the US, there continues to be growing animosity between the two countries and how these talks progress will play an important part in how the markets recover.

The Canadian Dollar is pretty much remaining in the 1.2500-1.2600 range over the last few sessions as the markets have calmed down ahead of the Federal Reserve interest rate announcement later this week. The Canadian Dollar has lost a little ground to the other currencies but has managed to hold onto its value against the US Dollar.

It is a quiet day on the calendar today but with stocks pointing lower on the opening we could see the US Dollar move ahead in the early session. The calendar will be busy later in the week when we get the Federal Reserve interest rate decision and both the Canadian and US GDP reports.