The Canadian dollar has gained 1% against the US dollar since Thursday morning. The gains have been largely on the back of a declining US currency which is weakening against most major currencies. Vaccine optimism, renewed stimulus hopes in the US, firmer oil prices, and a general risk-on environment have all pushed down the US dollar over the last several days. In addition, as markets grapple once again with the possibility of a no-deal Brexit and flee the Pound Sterling, the Canadian dollar has been the beneficiary of some of those outflows. The result of all of that has been that the Loonie has gone from trading around the 1.300 where it had been range bound for several weeks to just below 1.280 today. In addition to watching Brexit talks this week, we will also be paying close attention to a number of economic data points. Today’s Ivey PMI index will provide a good read on business sentiment in Canada. Finally, while no one expects a rate change, markets will be closely watching the language of the Bank of Canada release on Wednesday.
