While the Canadian dollar is basically unchanged to most currencies, it is the USD itself that is weak, markets believe that with the second stimulus plan now signed off, investors are now trading the risk on transactions. The House of Representatives voted on Monday to increase stimulus payments to qualified Americans to $2,000 from $600, sending the measure on to the Senate for a vote. However, Mitch McConnell has blocked this bid, sending problems to the Republicans running in the Georgia runoff.
Equity markets are off their highs and this is to be expected, a continued upward climb is not good, there has to be some form of a breather.
Expect the USDCAD to stay around these levels, markets are not really trading till next week when the institutional clients come back and assess their investment criteria and how the new world order fits in.