The Really Good; The best news today was not in the markets, but the announcement that Health Canada has approved the Pfizer vaccine for use in Canada. The first vaccinations will likely occur next week with up to 249,000 doses expected to be delivered before the end of December. The Moderna vaccine is likely going to be approved next week, if the schedule of the Pfizer vaccine approval holds for that vaccine. This should allow most of the health care workers and elderly to be vaccinated early in 2021. This truly is good news.
The Good: Canola futures rebounded today as nearby futures gained C$3.90 per tonne to close at C$587.80 per tonne. The move helped maintain the support level of C$580 per tonne and pushed back close to the C$590 per tonne. The next resistance point in the chart for January canola is C$594 per tonne. If January futures can close above that mark tomorrow it will leave open another challenge of the C$600 per tonne level.
The Ugly: Tiff Macklem, the Bank of Canada governor, announced today that interest rates would stay unchanged at 0.25 per cent. This was largely expected by the market, but the Canadian dollar traded lower today. The main reason was not interest rates, but strength in the U.S. dollar. The move in the loonie over the past nine months has been quite spectacular. This is a surprise as the economic fundamentals in Canada remain very poor. Low oil prices, increasing deficits and debt seem not to matter in a pandemic.