Nov
Trump vs. Canada - How affects the Canadian Currency?
The US 45th President elected as a Trump shocking the US dollar roller-coaster, the Canadian dollar tanked, but after that regain. So what’s next move of the Dollar?
A cutback in trade due to more protectionist parts, including a possible withdrawal from NAFTA
A more pro-fossil fuel focal point that might reduce the demand for Canadian oil
A likely growth in military spending as a conclusion of a more isolationist US foreign policy.
An increased spending on base, which might be positive but it will depend on trade policies and the ‘Buy America’ article in public contracts.
The whole impact is likely to be negative but depends on the policies that will be put in the corner.
The result of the US presidential election doesn’t reverse our view on the BoC which stands dependent on incoming data. However, given the possible cause on the economy from trade policies and the increased volatility, the likelihood that the BoC will require to gives additional monetary easing in the medium term has expanded.
Climate policy Change: Trump promises to pull back the US from international climate agreements. He says he will fragment President Barack Obama’s greenhouse-gas policies, and basic the US Environmental Protection Agency. Canada has various climate projects with the U.S.
Trade: Trump has regularly demanded a renegotiation of NAFTA, the North American Free Trade Agreement or he says he will abolish it. That might cause jitters to the north side, provides that Canada gives 3-quarters of its exports south.
Keystone XL: Trump has said so many times he favours constructions of the Keystone XL pipeline from Alberta. A campaign archives suggested he’d call TransCanada Corporation to reapply.
If he serious about proceeding, it might be a bit of Good news for the Canadian government. Trudeau had promoted the pipeline and faces political dilemmas at home related to fresh pipelines currently.
Syrian refugees: Trudeau went to the airport to pleasing Syrian refugees. Trump refers to the refugees as a Trojan horse. His son tweet’s a comparison to a pot of Skittles, where only one poor one can kill you. Canada works very closely with the US on intelligence and screening of foreigners. It’s an essential part of current plans to thin the Canada-US border and facilitate trade. It’s too long from certain a Trump authority would be keen on more refugees bordering.
Brain-poaching Prospects: Even before the election, CNBC reported that the sum of Americans searching for jobs in Canada had extended a whopping 58% since last year on the jobs-posting platform Monster global.
Defence: Trump has threatened to depart allies to their own devices if they lost to meet the agreed-upon NATO target of spending 2% of GDP on the military. Canada is regular nearly and freshly said it had no ongoing plans to get there.
Bad Bromance: Trudeau’s affection for US President Obama was obvious throughout their meetings. He will soon face a less predictable interrogator. Trudeau bit his voice, mostly, throughout the campaign but he did make fair his dislike with Trump’s talk of a Muslim ban.
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