The election of Donald Trump in 2016 had a significant impact on the Canadian dollar (CAD) market, primarily due to his administration's policies and rhetoric regarding trade, particularly with Canada. Here are some key points regarding that impact: 1. **Trade Relations**: Trump's focus on renegotiating trade agreements, especially NAFTA (North American Free Trade Agreement), created uncertainty in the CAD market. The potential for tariffs and changes to trade dynamics led to fluctuations in the value of the CAD against the USD. 2. **Oil Prices**: As Canada is a major oil exporter, Trump's energy policies—such as promoting fossil fuels—had an indirect effect on oil prices. Changes in U.S. energy policy could influence global oil supply and demand dynamics, impacting CAD since it is closely tied to crude oil prices. 3. **Market Volatility**: The unpredictability surrounding Trump's presidency often resulted in increased volatility within financial markets, including currency markets like that of CAD/USD. 4. **Investor Sentiment**: Investor sentiment towards risk can also affect currency values; during times of political uncertainty or perceived instability from U.S.-Canada relations under Trump’s administration, investors might have sought safer assets or currencies. 5. **Interest Rates and Economic Policy**: Any shifts in U.S monetary policy under Trump could lead to corresponding reactions from the Bank of Canada regarding interest rates which would directly influence exchange rates between USD and CAD. Overall, while there were various factors at play affecting the Canadian dollar during Trump's election period and subsequent presidency, his approach towards trade relationships was one of the most significant influences on its performance against other currencies.