USD index continues to rise

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

US Dollar             1.2700-1.2800

Euro                     1.4875-1.4975

Sterling                1.7400-1.7500

The US Dollar Index is rising quite dramatically over the last couple of sessions as investors continue to leave the stock market for safe haven assets. EUR.USD has dropped to trade at 1.1670 before pulling back some losses, GBP.USD has fallen to trade at 1.3670 overnight and looks set to fall further today. Stocks markets are much lower again this morning as the Delta variant continues to spread around the world, stocks were not helped by a UK study reporting this morning that vaccine coverage while still stopping the worst effects of the variant wanes after 90 days of coverage, the US has announced a booster shot for every American starting in September so it looks like it will be another long winter ahead of us. This virus will be playing with the markets and the economy for some time to come.

The Canadian Dollar has been hard hit over the past couple of days as USD.CAD opens the morning at 1.2750 (0.7840) level, the currency pairs highest levels in weeks. The Loonie was hit hard not only by the jump in the US Dollar but a falling oil price that (near $63 a barrel) is being caused by a drop in global demand due to worries about the virus. Also troubling in Canada was yesterday's annualized inflation rate that came in at 3.7% which is the highest level in 10 years, I will watch with interest to see how that plays out on the election campaign.

Stocks are pointing much lower this morning as worries about the global economy continue, look for more US Dollar appreciation and the Loonie to continue to suffer.