The US dollar is having its first notable daily move up in about two weeks — the US currency is currently up 0.7% against the Canadian dollar. Despite all the talk about the end of US dollar hegemony, as soon as the global economic picture looks murky, investors move to the US dollar. This morning, uncertainty about the US federal Covid aid package as well as rising US cases have led to a risk-off mood. That sense was compounded by the fact that second quarter GDP was down 33% and unemployment figures for the week were just as bad as expected. As a result, equities are down, oil is down and gold is trading down as well. Monthly GDP figures in Canada will be released tomorrow and will be a very good indication about the robustness (or lack thereof) of the reopenings.
