USD/CAD is reaching new highs, moving above the resistance line of 1.3460 which was quite close. The US presidential race is looking much more favorable for Donald Trump and very problematic for Hillary Clinton. The path continues to narrow for Clinton
The Canadian dollar would suffer from a US president that would sever trade relations with its northern neighbor. We are see the southern neighbor Mexico doing even worse. USD/MXN is up something like 10%.
In addition, a strong reaction is also seen in oil prices. Futures are plunging, a classic risk off reaction. The Canadian economy has already suffered from the sustained fall in oil prices.
Update: USD/CAD seems to have a hard time to break above 1.3460 and continues on to top 1.35.
What’s next for the pair? 1.3650 is the next line after working nicely early in the year. The round level of 1.40 is the next barrier and it’s followed only by 1.46.
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And here is another look at Dollar/CAD:
This could eventually be a boon for the Canadian economy, but it could take a lot of time for the weaker currency to help the economy.
