Yesterday, the Canadian dollar started the day quietly but then slowly started gaining against the US dollar. The momentum then picked up overnight and the Canadian dollar is now up 0.5% from yesterday’s close. In fact the Canadian dollar is now again hovering right around its highest levels since early 2018. The move is a result of broad USD declines against most major currencies and comes as stocks are showing some strength and reaching for near-record levels once again. The Canadian dollar gains have actually been held back slightly by some modest weakness in oil prices. The US inflation spike earlier in the week has been largely dismissed as either transitory and/or unlikely to persuade the Fed or Congress to restrain stimulus plans. Treasury Secretary Yellen continues to push for a large stimulus bill and House speaker Pelosi is confident that it will happen in the next few weeks. Government bond yields are creeping up on both of sides of the border so they are largely offsetting each other with respect to the USD to CAD exchange rate.
Account to Account