Usdcad Moves Higher

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Usdcad Moves Higher

Usd/Cad Moves Higher To 1.3950

USD/CAD continues its upward march for the 4th session in a row. For now, USD/CAD is seen near 1.3960 on Wednesday, with eyes set on the 1.4000 handle.

There's no doubt that Trump trades are at play in the USD/CAD pair, sending the US Dollar to a record high against the Canadian Dollar.

Trump Plans Will Boost The Gdp

The potential policies of Donald Trump are aimed at increasing investment & increasing government spending. In turn, this will increase the GDP but also carry inflation risks. But for now, the US Dollar is basking in glory and Canadian Dollar looks helpless.

Fed Kashkari has also recently commented on how the central bank is very confident about its battle against inflation. However, he warned that it is still too early to celebrate the victory against inflation.

According to Kashkari, the Fed will wait for now & will likely not model how the Trump policies will affect the economy. This will continue until the Fed has more clarity about the Fed's policies.

Meanwhile, crude oil prices have declined, which has also impacted the Canadian dollar. This has to do with the fact that CAD is closely linked with oil prices.

Right now, WTI is trading at $68.00, while the OPEC countries have also lowered their forecast for the oil demand in 2024. This is not the first time that the OPEC had to lower the oil demand this year which makes things tough for Canadian Dollar.

Looking ahead, the economic calendar will remain light on the Canadian side. This means the Greenback will be taking the driving seat while the Loonie Dollar will step back for now.

Now, the traders are awaiting the release of US inflation, which is due on Wednesday. This will provide a much-needed insight on how the US central bank will shape its policy.

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