The United States received failing scores for its efforts to prevent the laundering of criminal proceeds by shell companies, accountants and real estate agents, the Financial Action Task Force (FATF) said in a report released Thursday.
Despite crude oil’s massive rally on the back of the OPEC news, the Canadian dollar, which tends to correlate strongly with oil prices, has hardly moved against its major rivals. Indeed, the U.S. dollar/Canadian dollar (USD/CAD) currency pair momentarily turned positive.
Parallels between Donald Trump's U.S. economic plan and early 1980s Reaganomics have supercharged the dollar, reminding some that its rampant gains 30 years ago eventually required intervention to reverse them.
For obvious reasons, all the focus is on the OPEC meeting. As we pointed out the possibility yesterday, oil prices have bounced back very strongly today on renewed hopes that oil ministers will, after all, be able to hammer out a deal later on to limit crude production.
The heightened expectations of a U.S. interest rate hike in December has empowered the Greenback against a basket of currencies with prices currently hovering around 101.40 as of writing. Sentiment is firmly bullish toward the dollar with the currency on track for its strongest two-month gain since early 2015 amid the Trump effect.
The dollar gained ground against the yen on Tuesday after a roller-coaster 24 hours which traders say may just be a precursor to three weeks of risk-packed events for the $5 trillion a day currency market.
As we reported the possibility on Friday of last week (see “Gold on shaky footing as dollar surges to highest since 2003” for more), gold did indeed fall further lower this week. The rising dollar, yields and United States equity prices all weighed on the appeal of the buck-denominated, noninterest-bearing and perceived safe-haven precious metal.