The Canadian dollar is flat this morning and hovering around the 1.280 level. The USD to CAD exchange rate has been trading between 1.260 to 1.290 since the beginning of December 2020. Overall, the markets are taking a bit of a breather from the volatility of the last couple of weeks with stocks flattish and oil up another 1.2% to hit fresh highs from since before the pandemic. Friday will bring an important set of economic data points on both sides of the border that could move the exchange rates. In Canada, we will get December Balance of Trade numbers and January PMI which will provide an interesting insight into the state of the economy. In the US, we will get balance of trade numbers as well as January jobs figures. Between now and then we do not expect the Loonie to be tightly rangebound around the 1.280 level.
