USD/CAD Reaches Multi-Year Highs Near 1.4300 Amid The Canadian Political Crisis

The US Dollar keeps appreciating against the Canadian Dollar and trades right below 1.4300 for the first time in four years. Concerns about the negative impact of US tariffs on Canadian products and a political crisis in Canada are crushing the Canadian Dollar.

Canada’s finance minister, Chrystia Freeland, resigned on Monday due to disagreements with the prime minister over Trump’s tariffs threats. This has brought Trudeau’s unpopular government to the brink and increased bearish pressure on the loonie.

In the US the preliminary PMI figures released on Monday revealed that the services sector’s activity expanded at its fastest pace in three years, confirming that the economy keeps growing at a healthy pace.

Later today, the US  are expected to confirm this view, with a 0.5% monthly rise after a 0.4% increase in October. Excluding vehicles, sales of all other products are expected to have accelerated at a 0.4% pace in November from 0.1% in October. Monetary policy divergence between the Fed and the BoC weighs in the CADThese strong figures have not challenged the view that the  will cut rates by 25 basis points on Wednesday but they have raised concerns about a hawkishly tilted statement, pointing to a shallow easing cycle in 2025.

The Bank of Canada, on the other hand, slashed interest rates by 50 bps last week. This is the second consecutive such move and the Bank has hinted towards further easing.

BoC’s Governor Macklem confirmed that theory on Monday and added weigh on an already weak loonie, warning that the below forecast economic growth will keep inflation subdued.
 Canadian Dollar PRICE TodayThe table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Australian Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF USD   0.07% -0.17% -0.22% 0.31% 0.36% 0.32% 0.24% EUR -0.07%   -0.25% -0.31% 0.23% 0.29% 0.25% 0.16% GBP 0.17% 0.25%   -0.04% 0.48% 0.54% 0.49% 0.42% JPY 0.22% 0.31% 0.04%   0.53% 0.58% 0.53% 0.47% CAD -0.31% -0.23% -0.48% -0.53%   0.05% -0.00% -0.06% AUD -0.36% -0.29% -0.54% -0.58% -0.05%   -0.04% -0.12% NZD -0.32% -0.25% -0.49% -0.53% 0.00% 0.04%   -0.07% CHF -0.24% -0.16% -0.42% -0.47% 0.06% 0.12% 0.07%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).More By This Author:Silver Price Forecast: XAG/USD Finds Support At $30.30 To Trim Some Losses USD/CAD Resumes Uptrend To Test Long-Term Highs At 1.4240 US Dollar Defends Its Ground As Focus Shifts To Fed Decision