Volatility has been the name of the game, and in particular for the Canadian dollar or say the Mexican peso over the last couple months, but it’s not likely that it will come to an end as we await the climatic inauguration.
Currency markets are not alone in reacting to the comments, tweets, and speculation of policy from the incoming administration and all investors and market participants can look for is hopefully a little clarity in the first 100 days to quell some of these jitters.
But it’s important to look beyond headlines and into the details of what is actually plausible.
Going back to the confirmation hearings for the nomination of Secretary of the Treasury, Steve Mnuchin, suggesting the Trump administration wouldn’t go for a blanket border tax as proposed by Republican members of Congress.
Despite exciting Canadian exporters in that regard, it will be what they go after in NAFTA renegotiations and other trade issues like with Chinese steel, and luckily the majority of the focus isn’t on what’s being produced in this country.