The markets are cheering the beginning of the formal Biden transition process. Equities and oil are both up notably on the news but the Canadian dollar is flat despite the risk-on mood which usually drives up the Loonie. In fact, in the last couple of weeks, the currency has been experiencing some of the lowest volatility it has seen since the beginning of the pandemic. The exchange rate remains stable near the middle of the range of where it has been since the beginning of November and the Canadian dollar continues to trade at close to its highs from the beginning of the crisis. The Canadian dollar is also near the Interchange Financial Consensus Forecast which suggests that we should not expect big moves in either direction until something in the macro picture changes suddenly. There is also little in terms of economic data points expected for the rest of the week and with the US Thanksgiving holiday coming up it is likely that we are range-bound at these levels for the rest of the week.
