The Canadian dollar is stronger by 0.2% against the US dollar this morning. Added to the gains from late last week, the Loonie is now trading at a 10-day high. This morning’s gains are driven by an improved risk environment which typically sends the US dollar lower. Trump’s apparent modest recovery as well as an improved likelihood of a stimulus bill prior the US election have all helped overall sentiment. Some believe that new polls showing Biden much further ahead in the polls are also helping reduce uncertainty about the outcome of the election. Balance of trade numbers which are out tomorrow morning have the potential to move USD to CAD exchange rate and will be watched closely.
