Stocks look to open sharply lower this morning. The selling started in Europe where investors are concerned about the resurgence of the virus and potential lockdown measures, especially in the UK. Negative sentiment was further compounded by a report on bank transparency which has caused all major banks to sell off. US/China tensions continue to simmer despite Trump’s conditional agreement to letting the TikTok deal proceed. In the US, negotiations about a new stimulus bill have been complicated by the fight over the appointment to the Supreme Court. The impact of all that negative sentiment in the FX markets is not surprising. The US dollar is gaining strength as a relative safe haven, with the USD index up 0.6%. The Canadian dollar is actually holding up relatively well and is only down 0.4% this morning despite oil being down 1.5%. Nevertheless, the Loonie is now at a 5 week low against the US dollar.
