The Canadian dollar is trading at its highest level since May of 2018. There are three drivers of the increase in the value of the Loonie by 0.3% this morning. First, a large stimulus bill seems to be coming together in the US Congress which will further fuel the global economy and make risk-havens such as the US dollar less attractive. Second, oil is trading up just over 1% and pushing up all energy exporting currencies. Third, economic data from around the world (China and Australia in particular) continues to feed general optimism about the economic recovery and help risk-on currencies like the Loonie. The employment numbers in both the US and Canada tomorrow morning is now come into focus as the next big catalyst with the potential for moving the exchange rate.
