The US Dollar has slipped against the Canadian Dollar today, and may find itself in dire straits should 45th President Donald Trump return to his campaign form.
The Canadian Dollar has rallied on sudden increases in crude oil and gold prices, both of which have stemmed from ongoing marketplace uncertainty.
US Dollar Down against Canadian Dollar, Boosted Elsewhere by Rate Hike Forecasts
The US Dollar has floundered against the Canadian Dollar today, falling to 1.34 in the pairing on account of strength on the Canadian side.
In other pairings, the USD has jumped, thanks to an around-90% chance that the Fed will hike interest rates in December.
The Canadian Dollar has been in high demand thanks to commodity price shifts, which have seen at least temporary rises in the cost of crude oil and gold.
This demand has extended across all regular CAD pairings, illustrating how strong the latest upsurge has been.
USD CAD Outlook: Further Trump Appointments may Cause More Damage to US Dollar Demand
US Dollar to Canadian Dollar losses may well be triggered in the near-term, given the underlying threat of USD volatility posed by President-Elect Donald Trump.
The latest news from Trump has been that controversial Campaign Manager Steve Bannon has been appointed as Chief Strategist for the Trump administration.
This triggered a slump for the USD, and may well be a sign of things to come for Trump’s selection process.
With many top staffing positions yet to fill, the chances of Trump causing further softness for the US Dollar are high, which could ultimately prove beneficial to the Canadian Dollar.
Canadian Dollar Gains could Stem from Predicted Commodities Rush on Trump Fears
The future value of the Canadian Dollar may well hinge on how ‘stable’ Donald Trump’s presidency appears in the future, given that the most dramatic movements forecast on his victory have yet to properly occur.
One prediction in particular was that the cost of gold, an important Canadian commodity, could soar on Trump claiming victory. In reality, the price continued its pre-election decline, sliding from around $1270 per 100 ounces to $1218 a week later. The latest upwards movements have proven lacklustre compared to the highs that had been forecast.
According to Paulson Investment Co. Stockbroker Timothy Major in the aftermath of Trump’s election victory;
‘[There is] faith in the dollar and the American economy as a whole. I’m not seeing any real strong cases for gold now’.
With that in mind, if Trump’s wildcard persona from the election campaign resurfaces when he takes office on January 20th, investors may yet flock to gold, boosting its value as well as the Canadian Dollar at the same time.
Recent Interbank Exchange Rates
At the time of writing, the US Dollar Canadian Dollar (USD CAD) exchange rate was trending in the region of 1.34 and the Canadian Dollar US Dollar (CAD USD) exchange rate was trending in the region of 0.74.
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