fxs_header_sponsor_anchor

News

USD/CAD surges to 1.3900 neighborhood as Trump trade boosts USD

  • USD/CAD catches aggressive bets and draws support from a combination of factors.
  • The USD rallies across the board in reaction to Trump's early election lead.
  • Retreating Oil prices, dovish BoC minutes undermine the CAD and support the pair. 

The USD/CAD pair rallies over 80 pips from a two-week low, around the 1.3820-1.3815 region touched during the Asian session on Wednesday, reversing the previous day's losses and snapping a two-day losing streak. Spot prices, however, struggle to build on the momentum and remain below the 1.3900 mark as investors assess the incoming US election exit polls. 

The US Dollar (USD) surged across the board and shot to a one-week high after initial results indicated a lead for the Republican nominee Donald Trump in Georgia – a key swing state. Apart from this, a further pullback in Crude Oil prices from over a three-week top touched on Tuesday is seen undermining the commodity-linked Loonie and provides a goodish lift to the USD/CAD pair. 

The Canadian Dollar (CAD) is further weighed down by dovish Bank of Canada (BoC) October meeting minutes, showing that the governing council felt upside pressures on inflation will continue to decline and that the monetary policy need not be as restrictive. This keeps the door open for more aggressive policy easing by the Canadian central bank and favors the USD/CAD bulls. 

That said, preliminary results of the Pennsylvania exit poll turn out to be a mixed bag for Trump and Vice President Kamala Harris. This, in turn, keeps a lid on any further USD appreciation and acts as a headwind for the USD/CAD pair. Volatility in financial markets is expected to remain elevated on the back of the US election results, warranting some caution before placing aggressive directional bets.

US Dollar PRICE Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   0.88% 0.52% 0.93% 0.39% 0.68% 0.38% 0.72%
EUR -0.88%   -0.36% 0.03% -0.49% -0.20% -0.51% -0.16%
GBP -0.52% 0.36%   0.40% -0.13% 0.16% -0.15% 0.20%
JPY -0.93% -0.03% -0.40%   -0.55% -0.26% -0.58% -0.22%
CAD -0.39% 0.49% 0.13% 0.55%   0.29% -0.02% 0.33%
AUD -0.68% 0.20% -0.16% 0.26% -0.29%   -0.31% 0.05%
NZD -0.38% 0.51% 0.15% 0.58% 0.02% 0.31%   0.35%
CHF -0.72% 0.16% -0.20% 0.22% -0.33% -0.05% -0.35%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.