Trudeau’s Expected Resignation Prompts Dollar Rebound

6 hari lalu

The USD/CAD pair hit 1.4379, reflecting a rebound from its earlier January 2016 lows, as traders react to the potential resignation of Canadian Prime Minister Justin Trudeau. This possible political shift has also strengthened the US dollar against the Canadian dollar, causing the loonie to pare some of its earlier gains. Trudeau's anticipated departure, amid public and legislative pressure, adds an element of political uncertainty in Canada, which could impact the CAD's stability. Meanwhile, in the U.S., President-elect Donald Trump's tariff plans are being recalibrated to target only critical imports, a shift from his campaign's universal tariff approach. This adjustment aims to mitigate widespread disruptions and price increases, potentially supporting market stability and investor confidence. As these geopolitical and economic factors unfold, traders should remain vigilant, as developments in Canadian leadership and U.S. trade policies could introduce further volatility and influence USD/CAD dynamics.