The dollar is off to a bad start this week. After weeks of strong performance following Donald J. Trump's White House victory, the US dollar started the week out as the weakest G10 currency. Economists believe that investors are exercising caution before the Federal Reserve meeting this week. This caution follows weeks of enthusiasm for the Greenback.
Predictions Abound for GBP and Euro
The pound surged today, rising to 1.2688 against the US dollar. Economists are predicting various things for the pound in 2017, with some saying it will continue to perform well, and others saying that the pounds performance will be contingent upon the country's resilience in the face of Brexit.
The Euro continues to falter, though it gained against the US dollar. But it seems, nearly every major currency did gain against the US dollar today.
Good News for Commodities Driven Currency
The Canadian Dollar continues to thrive in the current economy. As oil prices surge, Canada's dollar has been surging as well. This is primarily due to the fact that Canada's economy is driven by oil, so a surge in oil prices is good for the Canadian dollar. Economists expect that the Canadian dollar will continue to have a strong performance into 2017.
Other commodity linked currencies are also performing well, such as the Australian dollar. Though the Australian dollar has been seeing lower values over the past few weeks, today we saw a small rally from the currency. The Aussie dollar's performance is closely link to a rise in iron ore today.
