The US dollar is down 0.3% this morning and back at eight month lows against the Canadian dollar. Once again, the move has much to do with US dollar weakness across the board and less to do with any particular strength in the Canadian dollar. The US dollar is down because of positive market sentiment and the move away from safe-havens like the USD. Relatedly, the equity markets, which are already at record highs, are looking positive once again this morning as well. The optimism reflects the developing view that COVID cases are now consistently on the decline in the US and along with very supportive central bank policies, and progress in various treatments, robust and real economic recovery could be around the corner.
