The USD/CAD pair weakens to around 1.4300 as traders await details on President Trump's economic plans. Bloomberg reports Trump will not immediately announce tariffs but will study trade policy with key partners. The Bank of Canada's latest survey suggests Canadian businesses are optimistic about sales, but concerned about Trump's trade policies. Oil prices also continue to fall, which could weigh on the CAD.
The USD/CAD pair weakened to around 1.4300 during the early Asian session on Tuesday, primarily driven by the US Dollar's decline. Traders are currently awaiting further details regarding President-elect Donald Trump 's economic plans, particularly his tariff policies. Bloomberg reported that Trump will not announce immediate tariffs after his inauguration but will instruct federal agencies to analyze tariff policies and the United States' trade relationships with Canada, Mexico, and China.
This report led to some selling pressure on the USD. The US Federal Reserve (Fed) is anticipated to maintain its benchmark overnight rate within the 4.25%-4.50% range at its January meeting. However, investors anticipate that Trump's policies could trigger inflationary pressures, potentially limiting the Fed to one more rate cut. This could help mitigate the USD's losses in the near term.On the Canadian Dollar (CAD) front, the Bank of Canada's (BoC) Business Outlook Survey revealed that Canadian businesses foresee improved demand and sales in the coming year, fueled by rate cuts. However, they are apprehensive about the potential risks posed by the promised US trade policies from Trump's administration. Meanwhile, the decline in crude oil prices could exert downward pressure on the commodity-linked CAD. Canada's position as the largest oil exporter to the US means that lower crude oil prices tend to negatively impact the CAD value.
USD/CAD US Dollar Canadian Dollar Trump Tariffs Bank Of Canada Oil Prices Trade Policies
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/CAD: Vols firm in nervous trade ahead of Trump 2.0The Canadian Dollar (CAD) has failed to pick up any support amid a broadly softer USD this morning. It, along with the MXN and JPY, is a relative underperformer on the session after reaching a minor, new 5-year low overnight—just under 1.45.
Read more »
USD/CAD Rebounds as Trump Denies Pared Tariff Plans, Trudeau Resignation ExpectedThe USD/CAD currency pair rose near 1.4345 in early Tuesday trading as President-elect Donald Trump refuted reports of scaling back his tariff policy, while Canadian Prime Minister Justin Trudeau is anticipated to announce his resignation.
Read more »
USD/CAD Climbs Near 1.4400 as US Dollar Strengthens Amid Trump Return UncertaintyThe USD/CAD currency pair surged, driven by the US Dollar's strength amidst uncertainty surrounding former President Trump's return to the White House. Investors anticipate a potential impact on economic growth and inflation in the US, potentially leading to a more gradual policy approach by the Federal Reserve.
Read more »
USD/CAD Rises Sharply as Investors Brace for Trump's Tariff PlansThe USD/CAD pair surges to near 1.4430 on Friday, driven by investor caution ahead of Trump's inauguration and expectations of increased tariffs on Canadian goods. The Canadian Dollar weakens as market participants grapple with the potential impact of a trade war on the Canadian economy.
Read more »
USD/CAD Climbs Sharply as Trump's Tariff Threats Cast Shadow on Canadian EconomyInvestor caution and anticipation of Trump's 25% tariff increase on Canadian exports drive the USD/CAD pair to near 1.4430. Softer CPI data fuels expectations of Fed rate cuts, strengthening the US Dollar further. Canadian Dollar weakens as the looming trade war dampens economic outlook.
Read more »
USD/CAD extends losing streak to near 1.4350 due to improved Oil pricesUSD/CAD continues to lose ground for the third successive session, trading around 1.4360 during the Asian hours on Monday.
Read more »