Although you may be scratching your head as to why markets are still in a positive mood even after storming of the U.S. Capitol building, investors are looking down the road and shrugging off this one-off incident. Markets believe that once the Democrats are in full control there will be further stimulus packages, and that chances of across the board tax hikes will not happen for some time. The key to this will be when will the post Covid recovery start? At the moment the U.S. is in the throes of massive numbers both living and dying. In the Los Angeles area, hospitals are now telling emergency medical responders not to bring people to them if there is no chance the patient will survive, there are no beds. It will take some time for these situations to go away, but once this is over, there are expectations of massive spending on anything and everything. People will be travelling, buying new cars, larger homes, mortality has hit home and life is now deemed to be too short.
The USD is stronger, a bit of flight to quality, not a lot, but some insurance buying, just in case.
The Canadian dollar has seen its recent run gains stop and will likely range trade between 1.2650-1.2800 in the near future.