The Canadian dollar traded higher overnight, lifted by AUD/USD and NZD/USD gains. The antipodean currencies rallied on improved global risk sentiment. The Chinese yuan continued to trade higher, and that development raised expectations for a trade fueled, global economic rebound, on the heels of a successful COVID-19 vaccine.
There is a danger that markets may be getting too far ahead of themselves. A coronavirus vaccine won’t be readily available till some time in the late spring, and that doesn’t necessarily mean that an effective distribution mechanism will be in place. More immediately, new COVID-19 cases continue to rise or remain stubbornly high in Ontario, Quebec, Manitoba, as well as in the U.K., Europe, and the U.S.. The impact of measure to contain the virus will negatively effective short-term economic growth, and it is hard to see the current “risk-rally” lasting.
The British pound continues to grind higher on anticipation that … Read the rest