News and Updates

Following President Trump’s decisive victory, the USD/CAD currency pair experienced a sharp spike, with the U.S. dollar reaching multi-year highs against the Canadian dollar. This surge was driven by market optimism regarding anticipated fiscal stimulus measures, including proposed corporate and personal tax cuts. However, in the two days following the election, approximately half of these gains were relinquished as investors reassessed the practical implications of such policies. The initial euphoria in risk assets observed on Wednesday and Thursday moderated, allowing the Canadian dollar to stabilize.

With President-elect Trump and a Republican-controlled Senate—and likely, the House of Representatives—the anticipated Trump economic boom is expected to amplify. The initial market reaction drove the U.S. dollar to multi-year highs against the Canadian dollar. However, as of Thursday morning, ahead of the Federal Reserve’s interest rate decision, market euphoria had tempered, allowing the Canadian dollar to stage a slight comeback.

The Canadian dollar (CAD) has faced substantial challenges in 2024, weakening by approximately 5% against the U.S. dollar (USD). This year marks the lowest point for the USD/CAD pair since 2020, and current trends indicate more downside may be lurking in the shadows. Here’s a breakdown of the factors haunting the Canadian dollar and keeping the USD strong.

The Canadian dollar (CAD) has experienced significant fluctuations throughout 2024, shaped by both domestic and international economic developments. As we move into the final quarter of the year, the CAD is grappling with a complex mix of factors ranging from domestic economic data to global market movements. This update will review the key catalysts that have influenced the CAD so far and provide an outlook for what traders and investors can expect in the coming months.