The Canadian Dollar Seeing Large Swings in Pricing

Key Movers

The US dollar fell through trade on Monday after the Fed announced unprecedented monetary policy stimulus measures designed to sure up the domestic economy and cushion the impact of the looming recession. The Federal Reserve announced new programs wherein it will lend against student loans, credit cards and small businesses while supporting larger employers in maintaining as much of the domestic workforce as possible. The Fed will also expand its purchase of mortgage-backed securities to help normalize market function, doing everything it can to help guide the economy through this unmatched period of uncertainty.While broader markets remain reluctant to buy back into risk assets, we expect haven plays will remain popular through the short and medium-term. That said, we would expect the record levels of central bank and government stimulus to bite at some point. As Congress passes a 2 trillion dollar stimulus package, we anticipate confidence among investors will improve, perhaps weighing on the USD and fostering a correction of the recent overshoot.