A conservative government tends to have a lower tax, less spending and small government. Financial markets generally approve of these things. So a majority conservative government is beneficial to the Canadian dollar.
As a result of this, people are calling for one or two more Fed moves. The dollar is going to be a little bid on this one.
I don't think this is a bearish report because average hourly earnings are ticking up significantly, ... That is obviously a direct driver of inflation.
People are falling out of love with the dollar. The U.S. data was on the disappointing side. That doesn't help.
The stock market declines are a little bit scary. People want to take the dollar weaker.
It's hard to like the euro.
The ISM manufacturing number was really stronger than expected. Obviously we've seen a sell-off in the U.S. bond market. As a result of this, people are calling for one or two more Fed moves.
We are seeing a lot of new buying of the Canadian dollar. The central bank continues to tighten and everyone is talking about the election. We expect continued strength in the Canadian dollar.
Any weakening of the Canadian dollar represents a chance to buy more of the currency.
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