Created
: 2025.01.08
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
US President-elect Trump: Something will have to be done with Canada and Mexico on trade
World FX news
Breaking news
US President-elect Trump: Something will have to be done with Canada and Mexico on trade
New
2025.01.08 07:50
2025.01.08 07:50
2025.01.08 07:50
President-elect Donald Trump said on Tuesday that he will impose tariffs on hundreds of billions of dollars worth of goods from Mexico and Canada to pressure both countries to stop the flow of illegal immigration and cross-border fentanyl shipments, per Reuters.
Key quotes
We're gonna try and have a policy where no windmills are being built.
We will have very serious tariffs on Mexico and Canada.
We're going to make up for that by putting substantial tariffs on Mexico and Canada.
Market reaction
The USD/CAD pair is trading 0.06% higher on the day at 1.4368, as of writing.
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Last updated
: 2025.01.08
Related articles
Forex Today: Back half of the week brings key datapoints as NFP looms ahead
38 minutes agoCanadian Dollar continues to pare recent gains, falls back further on Wednesday.
2025.01.09 04:20US Dollar rises as robust labor data buoy sentiment
2025.01.09 03:31Mexican Peso depreciates as Trump's tariff threats boost US Dollar
2025.01.09 02:50EUR/USD Price Analysis: Pair slides below 1.0300, indicators lose steam
2025.01.09 00:56AUD/USD dips amid Trump's tariff rhetoric
2025.01.08 23:43
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Gold price rise as Fed minutes suggest cautious easing approach
Gold price climbed during the North American session after the United States (US) Federal Reserve (Fed) struck a neutral to slightly hawkish tone in last December meeting minutes, hinting that it "would be appropriate to slow pace of easing." At the time of writing, XAU/USD trades at $2,659, up by 0.34%.
New
2025.01.09 05:10Forex Today: Back half of the week brings key datapoints as NFP looms ahead
Markets roiled on Wednesday but mostly stuck within tight ranges as investors gear up for a hectic release schedule ahead of Friday's key US NFP jobs print.
New
2025.01.09 04:56Canadian Dollar continues to pare recent gains, falls back further on Wednesday.
The Canadian Dollar (CAD) shed another one-fifth of one percent on Wednesday as the Loonie continues to flub chances for a technical recovery from multi-year lows against the US Dollar.
New
2025.01.09 04:20US Dollar rises as robust labor data buoy sentiment
The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, gained towards 109.00 on Wednesday, mainly due to strong labor market figures.
New
2025.01.09 03:31Dow Jones Industrial Average softens as jobs data withers
The Dow Jones Industrial Average (DJIA) ground its way lower once again on Wednesday.
New
2025.01.09 03:08Mexican Peso depreciates as Trump's tariff threats boost US Dollar
The Mexican Peso (MXN) was pressured by broad US Dollar (USD) strength on Wednesday, as risk-aversion capped the Mexican currency's advance due to reiterated tariff threats by United States (US) President-elect Donald Trump.
New
2025.01.09 02:50EUR/USD Price Analysis: Pair slides below 1.0300, indicators lose steam
EUR/USD struggled on Wednesday, shedding 0.48% to trade around 1.0295.
New
2025.01.09 00:56AUD/USD dips amid Trump's tariff rhetoric
The Australian dollar posted losses of over 0.40% against the US Dollar, and the latter remains supported by US President-elect Donald Trump's tariff threats.
New
2025.01.08 23:43Fed Minutes Preview: Focus on December 25 bps rate cut, slower policy easing outlook
The Minutes of the United States (US) Federal Reserve's (Fed) December 17-18 monetary policy meeting will be published on Wednesday at 19:00 GMT.
New
2025.01.08 23:15US weekly Initial Jobless Claims decline to 201K vs. 218K expected
There were 201,000 initial jobless claims in the week ending January 4, the weekly data published by the US Department of Labor (DOL) showed on Wednesday.
New
2025.01.08 22:35Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
