The week starts with the Canadian dollar down 0.4% as U.S. dollar edged up across the board in response to a slightly risk-averse tone in the markets. Stocks are just off of their record highs and oil is pulling back just a bit from its multi-year highs. The spike in Covid cases in certain Asian cities and the renewed lockdown in Sydney are contributing to the modestly cautious tone this morning. With the Canada Day holiday later this week and the light economic calendar in Canada, there is little on this side of the border that could impact the USD to CAD exchange rate this week. Instead, Canadian dollar investors will be watching US jobs figures later this week as well as the results of an OPEC+ meeting for direction on the exchange rate. One emerging domestic issue on the medium-term horizon is the possibility of a federal election in Canada. While it remains to be seen whether we will have an election in the next few months, and what the results might be, an abrupt change in policy resulting from such an election could certainly have a meaningful impact on the Canadian dollar.
