USD index gets pushed to its highest level since July 2020

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

US Dollar             1.2625-1.2725

Euro                     1.4175-1.4275

Sterling                1.6850-1.6950

The US Dollar index is marginally stronger this morning after strong economic data yesterday and a hawkish Federal Reserve helped push the Greenback to its highest level since July of 2020. The US Federal Reserve in the release of the minutes from their last policy meeting said that they would be open to increasing the rate that they are slowing their stimulus plan if inflation stays high. Markets now expect that the Fed will increase the withdrawal of stimulus at their December meeting and that US interest rate hikes will come quicker than first expected next year, a scenario which will to keep the US Dollar strong.

When you see the number of virus cases gripping Europe it is hard to imagine that the US Dollar will lose strength in the short-term.

The Canadian Dollar has out performed a lot of other currencies since the Fed minutes were published, USD.CAD fell a little and the Loonie has once again picked up some gains against the other currencies. With the US closed for the holiday today, look for the currency markets to remain quiet and it should be next week before we see any movement.