Tuesday, March 31st8.3°C
25326
24949

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

25603


Recent Trending




Today's Market
S&P TSX14902.44-5.95
S&P CDNX680.07-0.26
DJIA17776.12-200.19
Nasdaq4900.88-46.56
S&P 5002067.89-18.35
CDN Dollar0.7901+0.0013
Gold1187.90+4.80
Oil47.33-0.27
Lumber275.30-2.90
Natural Gas2.641+0.001

 
Okanagan Companies
Pacific Safety0.125+0.010
Knighthawk0.010.00
QHR Technologies Inc1.48-0.02
Cantex0.03-0.01
Anavex Life Sciences0.211-0.004
Metalex Ventures0.04+0.00
Russel Metals24.04-0.36
Copper Mountain Mining1.16-0.02
Colorado Resources0.11-0.01
ReliaBrand Inc0.0036-0.0024
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.25+0.02
Decisive Dividend Corporation1.80+0.02

 



25670

FEATURED Property
20874294110 Gallaghers Fairway S.
3 bedrooms 2 baths
$1,290,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Down payment

If you have less than 20% down payment, mortgage insurance is required through Canada Mortgage & Housing (CMHC), Genworth or Canada Guaranty. Homeowners no longer need the minimum 5% down payment ...


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...

_








Member of BC Press Council


24222