Tuesday, July 28th17.5°C
26925
26306

Traders avoid risk ahead of elections

The Canadian dollar was lower Monday morning as traders avoided riskier assets such as commodities and resource-based currencies such as the loonie ahead of Tuesday's presidential election.

The loonie fell 0.11 of a cent to 100.33 cents US.

The election appears to be shaping up to be a cliff-hanger, though most opinion polls indicate that President Barack Obama may have the edge over Mitt Romney in crucial swing states.

"It truly looks like a dead heat at this stage," observed Mark Chandler, head of Canadian FIC Strategy at RBC Dominion Securities.

After the election, attention will turn to dealing with the looming fiscal cliff facing the U.S. economy.

The "fiscal cliff" refers to a variety of tax hikes and massive budget reductions that will come into effect at the end of December unless Republicans and Democrats can come together with an alternative budget plan. Economists warn such a shock could send the economy back into recession. International Monetary Fund chief Christine Lagarde recently warned that Canada would not escape the fallout from that.

"A split outcome is likely to create market uncertainty and a temporary period of U.S. dollar strength, however it is not a medium-term driver and January is likely to bring at least some political compromise in order to avoid the four per cent drag on GDP that the cliff implies," said Scotia Capital chief currency strategist Camilla Sutton.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14001.37-184.87
S&P CDNX581.71-10.78
DJIA17440.59-127.94
Nasdaq5039.78-48.85
S&P 5002067.64-12.01
CDN Dollar0.7681+0.0012
Gold1093.90+8.30
Oil47.54-0.31
Lumber258.10+0.40
Natural Gas2.791+0.002

 
Okanagan Companies
Pacific Safety0.18-0.01
Knighthawk0.010.00
QHR Technologies Inc1.36-0.04
Cantex0.05+0.00
Anavex Life Sciences0.91+0.13
Metalex Ventures0.06-0.01
Russel Metals19.45-1.73
Copper Mountain Mining0.80-0.03
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.01
Mission Ready Services0.15+0.00
Decisive Dividend Corp2.70-0.05

 



26764

FEATURED Property
23686881612 Sunrise Road
$679,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_








Member of BC Press Council


24697