Friday, July 25th17.9°C
22663
21739

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 TSX15467.45+73.00
S&P CDNX1013.832.18
DJIA16934.85-148.95
Nasdaq4445.104-27.003
S&P 5001976.62-11.36
CDN Dollar0.9248-0.0059
Gold1294.80+4.2001
Oil104.30-0.29
Lumber325.80-0.10
Natural Gas3.772-0.075

 
Okanagan Companies
Pacific Safety0.200.00
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07-0.01
Anavex Life Sciences0.262-0.018
Metalex Ventures0.08+0.01
Russel Metals35.46-0.11
Copper Mountain Mining2.80-0.02
Colorado Resources0.21+0.005
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.04+0.015
Mission Ready Services0.19+0.01

 



21723

FEATURED Property
16721801929 Old Okanagan Highway
2 bedrooms 2 baths
$98,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...

_








Member of BC Press Council


22707