Yesterday's U.S. mid-term elections resulted in major Republican gains in both the House of Representatives and the Senate. The GOP appears to have been able to capitalize on the country's middling economic performance in recent years to consolidate its position on Capitol Hill and take control of the Senate for the first time since Barack Obama was elected. Markets appear favourable to the outcome; the S&P 500 was up 0.5% prior to the opening bell this morning and the US Dollar Index at its highest level since June 2010.
The bulk of this morning's economic news will come from south of the border. Starting at 8:15 with the ADP employment creation expected at 220k. Following at 9:45, the Markit US Services PMI will be released with a forecast steady reading of 57.1, meaning little chance for turbulence. Then at 10:00., the ISM Non-Manufacturing PMI is expected to be down slightly at 58.0. As the loonie may therefore continue to lose altitude today, take advantage of the situation to review your orders before Friday's North American jobs figures. Have a great day! Xavier Villemaire
- Range of the day: 1.1380 - 1.1480