(USD/CAD) Exchange Rate Rises as White House Releases Trump-Ukraine Call Details
US Dollar Canadian Dollar (USD/CAD) Exchange Rate Recovers from Impeachment Inquiry
The US Dollar Canadian Dollar (USD/CAD) exchange rate edged up and the pairing is currently trading at around CA$1.3286.
The Dollar recovered this afternoon after being battered by reports of a formal impeachment inquiry against President Donald Trump.
Democrat Nancy Pelosi stated the President ‘must be held accountable’ over allegations.
he pressured a foreign power to damage his political rival, Joe Biden.
The White House released details of a call between the President and Ukraine’s Volodymyr Zelensky which revealed Trump pushed for an investigation of Biden and his son.
While the President has called the efforts a ‘witch hunt’, the proceedings are unlikely to pass in the Republican-controlled Senate.
US Dollar (USD) Edges Higher as Trump Refuses to Accept ‘Bad Deal’ From China
Renewed global trade tensions likely sparked an upswing in appetite for the safe-haven US Dollar as President Trump criticized Beijing’s trade practices.
Trump also noted that he would not accept a ‘bad deal’ from China during the trade negotiations, just weeks before US-China in-person trade talks are set to resume.
Meanwhile, in response to the US President’s speech, China’s top diplomat hot back stating Beijing had no intention to ‘play ‘Game of Thrones’ on the world stage’.
Commenting on Donald Trump’s speech, chief strategist at Sumitomo Mitsui Bank, Daisuke Uno said:
‘Trump’s speech was full of sensitive words for China – trade practices, currencies, freedom of religion and so on. It is not hard to imagine it will irritate China.
‘In the past, China has reacted to US pressure on trade by bringing down the Yuan. It appears we are having those settings again.’
Canadian Dollar (CAD) Falls as Oil Prices Continue to Slide
Meanwhile, the Canadian Dollar was left under pressure on Wednesday as oil prices continued to slide for a second day.
US President Donald Trump’s bearish comments on the progress of US-China trade sparked worries the demand for fuel could fall further.
Commenting on this, global oil strategist at BNP Paribas Harry Tchilinguirian said:
‘Focus will return to faltering oil demand concerns as there is unlikely to be any quick resolution to US-China trade differences to positively shift economic expectations.
‘Barring a repeat attack on Saudi infra-structure, the oil will weaken further.’
US Dollar Canadian Dollar Outlook: Disappointing US GDP to Weigh on USD?
Looking ahead to Thursday, the Canadian Dollar (CAD) could rise against the US Dollar (USD) following the release of July’s Canadian average weekly earnings.
If earnings rise higher than expected, the ‘Loonie’ could receive an upswing of support.
Meanwhile, the Dollar could be left under pressure following the release of Q2 final GDP data.
If the economy has not expanded by as much as expected in the three months to June, the US Dollar Canadian Dollar (USD/CAD) exchange rate could slump.