We start the week with Toronto, Canada’s largest city, under lockdown for at least four weeks. While it is only one city, and we have all now learned to live with restrictions, there will be an economic impact over time. More broadly, the overall mood is positive this morning in response to more hopeful vaccine news over the weekend. Oil and stocks, the two biggest drivers of the Canadian dollar are up as a result of the optimism. Not surprisingly, the Canadian dollar is up 0.2%. The exchange rate remains near the middle of the range of where it has been since the beginning of November and the Canadian dollar continues to trade at close to its highs from the onst of the pandemic. Canada and the UK entered into a transitional post-Brexit trade deal removing a minor source of uncertainty for the Loonie.
