US politics is dominating all discussion today. In particular, the impact of Donald Trump’s positive test for the coronavirus is causing a flight to safety that is affecting all asset classes this morning. That means the US dollar is stronger across the board and up 0.5% against the Canadian dollar. The move away from risky assets is also impacting commodities with oil down 5%. Adding to the concern is weaker than expected employment data from the US. The markets will be focused on two things today; news about the health of Trump (currently showing mild symptoms) and evidence that the US government is functioning normally. As long as both of those items status quo, we do not expect much more impact on the Canadian dollar than has already been reflected this morning.
