The Canadian dollar fell against its US peer on Monday as the shock of the surprise victory of Donald Trump in the US presidential elections continued to weigh on the currency. The loonie managed to gain on other most-traded rivals, like the euro and the Japanese yen.
Trump’s victory led to concerns that trading ties between Canada and the United States may weaken. That is a very bad prospect of the Canada’s economy and the USA are the nation’s biggest trading partner.
Over the long run, the outcome of the US elections may prove positive for Canada. If Trump’s policies boost US economic growth, the Canadian economy can profit from that.
As for fundamental factors influencing the Canadian currency, crude oil prices paused its decline, but it is hard to tell if that will be followed by a bounce or by just another move down. The very important OPEC meeting in Vienna on November 30 is nearing, but at the present time it is impossible to tell whether the organization will be able to reach an accord regarding cutting oil output, a move which should support prices for the commodity.
USD/CAD rallied from 1.3502 to 1.3588 before backing off to 1.3537 as of 23:59 GMT today. EUR/CAD declined from 1.4625 to 1.4546. CAD/JPY advanced from 79.11 to 79.91.
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