With the advent of President elect Biden’s stimulus plan which is to be released either today or tomorrow. Expectations are for an economic jump start to the tune of $1.5 trillion dollars, markets have reacted accordingly, particularly commodities, Dr. Copper is now within its one year high of $3.662 a pound USD. Copper has been the leading indicator of a growing global economy and investors are betting on this.
The Canadian dollar has moved in tandem with commodities as it still has some correlation to the movement of oil, gold and copper. Plus, Canada theoretically should stand to benefit from a new government in Washington, but the Democrats have been using a similar platform to the Republicans by putting America first. We will have to wait and see, a lot of governments including Canada think that things are going to back to where things were, not sure about that.
The USDCAD will likely stay within a range of 1.2620-1.2650 for the rest of the day.
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