The Canadian dollar looks to open the week right around the same levels as it ended last week, despite the fact that oil, gold, and equities are all in the positive this morning. With a relatively light economic calendar, we do not expect much volatility in the exchange rate today. More generally, the currency markets are looking for direction. There continues to be a lot of pessimism about the US dollar based on the unusual spread of the coronovirus in that country. But the US dollar remains a safe-haven and it is not clear that the Bank of Canada will remain on the sidelines indefinitely if the Loonie continues to weaken and threaten the economic recovery. Inflation data out of the US on Wednesday may be the next catalyst to give the market the direction it needs.
