Daily Afternoon Report 17.01.2017
The Canadian dollar climbed to three-month highs against its broadly weaker U.S. counterpart on Tuesday after President-elect Donald Trump said the U.S. dollar was too strong.
USD/CAD fell 1.04% to trade at 1.3039, the weakest level since October 19. The pair’s strongest level of the session was 1.3190, while its weakest was 1.3019.
In an interview published in the Wall Street Journal website on Monday Trump said U.S. companies could not compete with China \”because our currency is too strong. And it\’s killing us\”.
In separate remarks, a senior adviser to the U.S. President-elect warned about the risk from a stronger dollar.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 1.15% to 100.36, the lowest level since December 8.
A strong rally in sterling also pressured the greenback lower.
The pound rose sharply after British Prime Minister Theresa May said parliament would have a vote on the final deal for the U.K.\’s exit from the European Union.
May also said Britain would leave the EU\’s single market but would seek maximum access to it through a new trade agreement.
Meanwhile, investors were looking ahead to the outcome of the Bank of Canada’s upcoming policy meeting on Wednesday, with market watchers expecting no change.
Recent economic reports have indicated that the Canadian economy remains resilient.
A report earlier this month showed that Canadian jobs growth surged in December. The country also posted its first trade surplus in more than two years in November, while a Bank of Canada survey last week pointed to improving business conditions.