The Canadian dollar opens the week slightly lower (0.2%) against the US dollar but continues to trade at near one month highs. In fact, the Loonie has now gained more than 2% since the beginning of October. A good portion of that gain came on Friday in response to a surprisingly strong jobs number in Canada. While market sentiment is mildly negative this morning with equities giving up some of yesterday’s gains (only Canada was closed), for the most part we remain in a holding pattern awaiting further data points. News of a breakthrough in a stimulus bill in the US would move the Loonie further up. On the other hand, a material worsening of the Covid situation domestically or internationally would push our currency down. US inflation figures came in as expected this morning and did not move the currency markets.
