Thursday, April 24th8.4°C
21725

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

20344


Recent Trending




Today's Market
S&P TSX14554.25+20.86
S&P CDNX1014.453.47
DJIA16501.650.00
Nasdaq4148.338+21.372
S&P 5001878.61+3.22
CDN Dollar0.9073+0.0009
Gold1291.30+7.1001
Oil102.15-2.22
Lumber333.40+1.80
Natural Gas4.685-0.045

 
Okanagan Companies
Pacific Safety0.11-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.35+0.13
Cantex0.05+0.005
Anavex Life Sciences0.36-0.02
Metalex Ventures0.075-0.005
Russel Metals31.48+0.18
Copper Mountain Mining2.49+0.16
Colorado Resources0.265-0.005
ReliaBrand Inc0.11+0.03
Sunrise Resources Ltd0.03+0.005
Mission Ready Services0.250.00

 



19052

FEATURED Property
1915506#208 3570 Woodsdale Road
1 bedrooms 1 baths
$525,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


On living and dying

Our ability to live beyond our years has nothing to do with medical science; we will all live longer than our physical bodies, each of us will leave behind a personal legacy made up of our deeds, our ...


Learning to flirt with the edge

With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...

_



21368




Member of BC Press Council


20728