It is a mixed day in the markets overall today but the US dollar strength continues. The US currency is 0.2% against the Canadian dollar and is hovering near 7-week highs. Given the weakness of oil (down 1% today) and the broad strength of the US dollar, the Canadian dollar is actually holding up well relative to its other G10 peers. USD continues to benefit from negative sentiment globally as investors look for relative safe-havens. Ironically, some of that negative sentiment emanates from the US where there is a risk that political stalemate will no allow for a deal on a fiscal relief package. In addition, the resurgence of the virus in the fall in many major parts of the world continues to dampen any optimism about economic recovery. We continue to expect volatility until there is further clarity from economic and health data about the status of the recovery.
