The world’s most actively traded currency is coming off it’s worst annual performance as seen in the 2 January USDCAD Fundamental Drivers Analysis. Political optimism has failed to lift the US dollar.
2 January, OctaFX – The first trading session of the new year is expected to see limited activity, with only a handful of PMI data scheduled to make headlines. In North America, Markit will also report on US and Canadian manufacturing conditions.
Much of the gains were led by Wall Street, which rallied behind President Trump’s young presidency. The Trump administration is expected to adopt a cocktail of policy measures aimed at boosting economic growth. Optimism in the plan contributed to back-to-back quarters of solid GDP growth for the world’s largest economy.
However, political optimism failed to lift the US dollar. The world’s most actively traded currency is coming off its worst annual performance in well over a decade even as the Federal Reserve raised interest rates multiple times.
The Fed will hold its first meeting of the year on 30 January, which will be the final meeting with Janet Yellen at the helm. She will be replaced in February by current Fed Governor Jerome Powell.
2 January USDCAD Fundamental Drivers Analysis
The Canadian dollar was down slightly in Asian trading but continued to hover near 10-week highs. The USD/CAD exchange rate is currently trading around 1.2535, with the bears eyeing a reversal back down toward 1.2500.
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