The markets were closed on Monday in Canada but not anywhere else and it was a very big day in the financial markets. News of progress on a vaccine candidate combined with an aggressive posture by Fed Chairman Powell in an interview on Sunday night led to a resurgence of risk taking. Equity markets traded up very strongly as did oil. And risk-on currencies like the Canadian dollar were in favour. The Canadian dollar is up 1% from Friday and is up another 0.2% this morning. We expect further volatility as the market is bombarded by health and corporate news as earnings season gains steam. Canadian inflation data tomorrow will be interesting to watch.
