The past week has seen a continuation of the current differing market views, with recovery hopes on the one end and virus fears on the other. But like we’ve seen for a few weeks now, the market’s proclivity to discount the negatives has once again seen the bulls win the fight. This week, the virus front poses a possible bigger challenge.
This week the USD faces a bit of a dilemma in terms of its current drivers. On the one end general short-term ease in markets means data should drive it lower, but the threat of further safe-haven inflows remains a possibility.
It’ll be an interesting week for the Canadian Dollar with attention still firmly fixed on the Coronavirus and the current railroad disruptions. Apart from that, we also have very important hard data with Q4 GDP due in the upcoming week as well.
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