Donald Trump continues to be the centre of attention for financial markets. Yesterday afternoon, he tweeted that he no longer wanted to negotiate a stimulus package with Congress. The reaction in the markets was immediate and predictable; all risky assets traded down. Stock indices which had been having quite a positive day closed down about 1%. Commodities also sold off. And the Canadian dollar, which had been having a quiet and stable day, all of a sudden dropped 0.4%. Apparently, Trump now has amended his view as he tweeted a contradictory message overnight which suggests he is still (at least, partially) open to a stimulus. Again, the market reacted predictably and the Canadian dollar has regained yesterday’s losses. In Canada we are watching the Ivey PMI index closely for indications about economic recovery. That statistic has the potential to move the market in USD/CAD today.
