The financial markets start the week on a decidedly more positive note as one country after another announces initial shipments of the Covid vaccine, raising hopes for a swift recovery from the global coronavirus-induced economic downturn. At the same time, Brexit negotiations have been extended yet again, increasing the possibility of an orderly economic exit for the UK from the EU. All of that is lifting riskier currencies and pushing down the US dollar. USD is down across the board and is now down to a 2 1/2 year low against a basket of other major currencies. The Canadian dollar is up 0.4% against its US counterpart. Of note in terms of economic news this week is tomorrow’s housing starts in Canada as well as a speech by Governor Macklem. On Wednesday, the November retail sales figure in the US and November inflation in Canada are expected to be released and will be closely monitored.
