Head of the Bank of Canada Stephen Poloz, will speak tomorrow which will be the first member of the Bank to speak since Donald Trump was elected as the next President of the United States. Trump has previously talked of tearing up existing trade agreements and negotiating new ones.
The Canadian Ambassador to the US has suggested he would be happy for re-negotiations, however there is no doubt that Trump could bring some difficult discussions.
The Canadian Immigration sight crashed yesterday morning as the news filtered through of Trumps victory with a lot of Americans looking for an alternative. Whilst this might for many be a trivial matter there is certainly evidence of the discontent amongst certain voter groups. Either way the effect on America’s closest trading partner is yet to be fully seen and could cause a huge amount of volatility in the market.
Oil Prices Could Rise Under Trump
Trump has been majorly critical of the current deals with Iran and could potentially look to re-negotiate or completely stop the agreement. If Iran’s oil supply was to be rescinded from the market, then the price of oil is likely to rise especially as Iran are pumping masses into the market for cheap. Whilst this could be a longer term effect the price of oil has a major influence on the Canadian Dollar.
Sterling has had a massive jump today against a lot of major currencies as the UK’s situation is no longer the major news. This could continue to happen as we move towards European elections and I believe Sterling could start to get stronger.