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Canadian Dollar Hits 2-Year Low After Trump Win

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Canadian Dollar Hits 2-Year Low After Trump Win

The Canadian dollar has hit a two year low following the result of yesterdays presidential elections in the United States, following the election of Donald Trump for a second term.

The US dollar hit a high of $1.3959 per Canadian dollar, a level which marks a two year low for the Canadian dollar. The surge was in relation to the strengthening of the US dollar following Trump’s win, which surged against all G-10 currencies, while commodities, including precious metals, sunk lower off the strength of the dollar.

You can read more on the matter here.

ATHA Energy is focused on developing Canada’s uranium assets in pursuit of a clean energy future. ATHA holds the largest cumulative exploration package in the Athabasca Basin, the world's most prominent basin for uranium discoveries, a 10% carried interest portfolio of claims operated by NexGen Energy and IsoEnergy Ltd. The company as a whole holds 8.1 million acres of claims across three major uranium jurisdictions in Canada.

What’s going on?

  • Stellantis to Cut 1,100 Jobs at Ohio Jeep Plant (theDeepDive)

  • Mexican President Sheinbaum emphasizes longstanding alliance with U.S. after Trump re-election (Globe)

  • Americans Are Content to Rent as Market Tilts Away From Buyers (Bloomberg)

  • Canadian Dollar Hits Two Year Low Following Trump’s Election (theDeepDive)

  • Canadian mining firms fear ability to meet soaring demand as jobs crisis stalks land of the Big Nickel (Reuters)

  • US trade partners brace for tougher tariffs in Trump’s second term (FT)

  • Magino Drives Alamos Gold to Revenue Record, Yet Rising Costs Mean Missed Earnings (theDeepDive)

  • FAA to strengthen oversight as Boeing set to resume 737 MAX production (Reuters)

  • Billionaire hedge fund manager lines himself up for Treasury secretary role (FT)

  • First Majestic Silver Posts Topline Revenue Of $146.1 Million In Q3 2024 (theDeepDive)

  • Banks face growing risk as double defaults on commercial loans mount (FT)

  • Canada preparing for influx of U.S. migrants facing deportation after Trump’s victory (Globe)

What’s the latest?

  • BOE: The Bank of England cut its key interest rate by 25 basis points to 4.75%, with an 8-1 committee vote, marking its second reduction this year amid declining inflation. The BOE adjusted its inflation forecast to peak at 2.75% in 2024 due to recent fiscal measures and expects growth to increase by around 0.75% over the year. Governor Andrew Bailey emphasized a "gradual approach" to further easing, citing the government’s budget as a “credible” support for growth while maintaining the focus on reaching the 2% inflation target.

  • Cannabis: Shares in Canadian cannabis companies dropped sharply after U.S. election outcomes stalled marijuana legalization efforts in several states. Canopy Growth fell 21% to $6.16, Aurora Cannabis dropped 18% to $6.94, and Organigram slid 11% to $2.28 on the Toronto Stock Exchange. Legalization measures failed in Florida, North Dakota, and South Dakota, dampening market optimism for expanded U.S. sales.

  • Politics: With Donald Trump’s election as the 47th U.S. president, concerns arise over U.S.-Canada trade stability due to proposed broad tariffs on imports. TD Economics estimates that a full 10% tariff could lower Canadian exports to the U.S. by nearly 5% by 2027, with potential inflationary effects. Former U.S. Ambassador Bruce Heyman and others emphasize risks to the USMCA, especially as the first review in 2026 could introduce uncertainty if consensus isn’t reached. Retaliatory tariffs may further impact Canadian growth, potentially prompting the Bank of Canada to cut rates by 50-75 basis points.

  • TC Energy: TC Energy has reduced the estimated cost of its Southeast Gateway pipeline project in Mexico to US$3.9–4.1 billion from the initial US$4.5 billion. For Q3, TC Energy reported a profit of C$1.46 billion (C$1.40 per share) compared to a loss of C$197 million last year, with revenue increasing to C$4.08 billion. The company’s earnings per share of C$1.03 exceeded analyst expectations of 95 cents.

  • The Fed: The Federal Reserve is expected to cut interest rates for the second time to ease inflation but faces new uncertainties with Trump’s economic policies, which may be inflationary. Proposed tariffs and higher spending could push inflation to 2.75-3% by 2026, complicating the Fed's rate reduction plans. Investor actions have raised Treasury yields, increasing borrowing costs and countering the Fed’s recent cuts, while rate cuts expected in early 2025 are now seen as unlikely by the markets.

Kinross Q3 2024 Earnings

The stock market and stuff

  • BCE Sees Record Margins In Q3 2024 But Takes A $1.2 Billion Net Loss Hit (theDeepDive)

  • Bombardier Hits $2.1 Billion Revenue in Q3 2024, Cash Flow In Free Fall (theDeepDive)

  • U.S. Federal Reserve set to cut interest rates again as post-election uncertainty grows (BNN)

  • Coeur Mining Beats Estimates in Q3 2024 Financials: 61% Revenue Jump (theDeepDive)

In the juniors

  • AMC’s Q3 2024 Earnings: Revenues Slip, Net Loss Widens, Cash Flow In The Red (theDeepDive)

  • Libero Copper Announces Details of Ongoing 14,000-Metre Exploration Program at Mocoa Porphyry Copper-Molybdenum Deposit (JMN)

  • New Found Gold To Deliver Maiden Resource, PEA In Q2 2025 (theDeepDive)

FULL DISCLOSURE: ATHA Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of ATHA Energy. The author has been compensated to cover ATHA Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.