After yesterday’s big moves on euphoria about a vaccine, the markets are a little calmer this morning. The optimism about the beginning of the end of the pandemic remains. But the markets are already pricing in end to the worst part of the pandemic sometime in early to mid 2020, as shown by the fact that technology stocks continue to be weak whereas those industrial and travel stocks hit most during the pandemic have been gaining rapidly over the last two days. Oil is up again this morning, though like every other asset the move is tempered relative to yesterday’s gains. The Canadian dollar is flat, though even after giving up some of its gains in the afternoon yesterday, it is currently trading at its highest levels since February 2020. There is little in terms of Canadian economic data on the horizon this week and with the US election drama in the rear view mirror, we expect the Loonie to continue to be rangebound for the rest of the week.
