Account to Account
USD to CAD Update: Quiet Start, US Political Risk Remains on Horizon
The markets are starting out in a relatively quiet fashion with equities, oil, and the US dollar all up modestly. The Canadian dollar is down just 0.1% and right in the middle of the range of where it has been trading over the last couple of weeks. The risk of an election having been averted in Canada, attention is once again in the US politics in general and the much-awaited stimulus package. The markets have already priced in the likelihood that the best case outcome at this point would be a “skinny” package so there should not be much surprise left there when it ultimately happens. The surprising decline in weekly US jobless claims this morning did somewhat perk up the US dollar but given the remaining uncertainties in the global economy the impact was limited. The endless drama of the US election season hits another note tonight with the final debate. If it becomes obvious that Trump has no realistic chance of reelection, expect a bit of increased appetite for risk as the uncertainty overhand is removed.