Account to Account
USD to CAD Update: Canadian Dollar Flat as US Fiscal Uncertainty Continues
The focus of the markets remains on the political scene in the US. Most immediately, the prospects of a fiscal stimulus deal are currently the biggest driver of sentiment. Yesterday morning’s positive sentiment quickly fell apart as stocks sold off in the afternoon on diminishing hopes for even a “skinny” fiscal stimulus bill in the US. This morning, there is some renewed hope as a deadline approaches for a deal in Congress and the markets have regained some of their losses. The Canadian dollar is flat and right where it started the week after giving up its modest gains yesterday afternoon. Oil is down modestly today but flat for the week. Domestically, Canada will release September inflation figures tomorrow which have the potential to move the Canadian dollar. Retail sales figures for August will also be released tomorrow but they are not expected to be a market moving data point. Regardless, the primary focus for the USD/CAD rate for the next two weeks will be US politics.