2016-11-28 13:48:23

The USD has been declining since the opening of today’s trading day and at the beginning of the European session after strong rise caused by the victory of Donald Trump and expectations of the rate hike in the USA.

The rise in the USD was also caused by expectations that Donald Trump will increase public expenditures and reduce taxes, which will increase inflation and economic growth in the country.

Market participants evaluate chances of the interest rate hike in the USA Most investors expect that the interest rate will be increased in the Fed meeting in December 13-14.

According to the futures for the Fed rate, probability of monetary policy tightening in December is 95%. Trump supports the lift of restrictions on oil production in the USA, which will trigger further decline in the commodity prices, including oil, which is the main export commodity of Canada.

Uncertainty about the outcome of the meeting of the largest exporters of oil on 30 November has also led to the sharp decline in oil prices and the increase in volatility in the foreign exchange market at the end of last week.

An agreement to reduce oil production may not be reached. Mass media has reported that Saudi Arabia will not participate at OPEC meeting scheduled for Monday.

Large-scale decline in the USD caused by the profit taking caused the decline in the pair USD/CAD on Monday.

It is likely that expectations for the rate hike in December have been incorporated in the price, and the USD is undergoing downward correction after three weeks of growth.

Today at 17:00 (GMT+3) Mario Draghi will give a speech; at 18:30 – Fed Dallas will release index of business activity in the manufacturing sector for November. Volatility will rise in the foreign exchange market.USD/CAD: investors take profit.  Fundamental analysis for 28/11/2016