In the early European session on Tuesday, the USD/CAD drops to about 1.4310.
In support of the Loonie, Justin Trudeau announced his resignation as prime minister of Canada.
A hawkish Fed outlook could help keep the pair's losses in check.
Tuesday's early European session sees the USD/CAD pair edging lower to around 1.4310. Following news that Canadian Prime Minister Justin Trudeau would step down, the Canadian dollar (CAD) appreciates versus the US dollar.
According to a Reuters report on Monday, Justin Trudeau is expected to make his resignation announcement prior to Wednesday's emergency meeting of Liberal lawmakers. "Loonie gains are being supported by the news that Justin Trudeau is stepping down," stated Nick Rees, senior FX market analyst at Monex Europe Ltd.
Canadian media outlet The Globe and Mail reported Tuesday that if incoming US President Donald Trump imposes a 25% tax on all Canadian goods, the federal government is considering the early release of a proposed list of American goods that would be subject to retaliatory Canadian tariffs.
When Trump takes office, investors will be watching to see how aggressive his tariff policies become. The US Federal Reserve (Fed) is more likely to maintain stable interest rates at its upcoming meeting, which could help the US dollar. Markets are pricing in only 7.5% odds of a 25 basis point (bps) rate cut at the January Fed meeting, according to the CME FedWatch tool.
In support of the Loonie, Justin Trudeau announced his resignation as prime minister of Canada.
A hawkish Fed outlook could help keep the pair's losses in check.
Tuesday's early European session sees the USD/CAD pair edging lower to around 1.4310. Following news that Canadian Prime Minister Justin Trudeau would step down, the Canadian dollar (CAD) appreciates versus the US dollar.
According to a Reuters report on Monday, Justin Trudeau is expected to make his resignation announcement prior to Wednesday's emergency meeting of Liberal lawmakers. "Loonie gains are being supported by the news that Justin Trudeau is stepping down," stated Nick Rees, senior FX market analyst at Monex Europe Ltd.
Canadian media outlet The Globe and Mail reported Tuesday that if incoming US President Donald Trump imposes a 25% tax on all Canadian goods, the federal government is considering the early release of a proposed list of American goods that would be subject to retaliatory Canadian tariffs.
When Trump takes office, investors will be watching to see how aggressive his tariff policies become. The US Federal Reserve (Fed) is more likely to maintain stable interest rates at its upcoming meeting, which could help the US dollar. Markets are pricing in only 7.5% odds of a 25 basis point (bps) rate cut at the January Fed meeting, according to the CME FedWatch tool.
