- Outlook USD / CAD proposes economic insecurity in Canada.
- Trump announced 35% of tariffs on import from Canada, which weighed at Loonie.
- Market participants await a monthly employment report of Canada.
Outlook USD / CAD proposes economic insecurity in Canada after Trump’s announcement of 35% of the tariff on the goods from the country. As a result, the Canadian dollar failed against the US dollar. Meanwhile, market participants await crucial employment data from Canada.
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Trump intensified its tariff threats on Thursday, the announcement of several tariffs in countries that have not yet signed trading offers. Significantly, Canada has received 35% of tariffs on imports, which weighed at Loonie. If there is no commercial business between Canada and the United States to 1. August, tariffs will take effect. Such an outcome would become a look for a canadian economy. At the same time, it could result in a trade war two countries.
Meanwhile, the American president also said that he was planning a tariff of 15% or 20% in most countries. The news has amplified the dollar, which could benefit from higher imports and inflation costs. However, in the long run, trading wars can hurt the American economy. Brazil already promised to revenge 1. August.
Meanwhile, market participants are waiting for a monthly report on canada employment. This will help shaping the prospects for reducing Canada’s bank speed.
Today is key events USD / CAD
- Change of employment in Canada
- Unemployment rate in Canada
USD / CAD TECHNICAL Outlook: The bulls face strong resistance at 1,3700
On the Technical page, USD / CAD price refused higher after filling support for 30 SMA. Although he reached the new high, the bulls could not close above the level 1,3700. Instead, the price made a big fuse, showing rejection.
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The new Bikovski move fulfilled solid resistance at the level of 1,3700, causing the price to stop for a while. However, the bias of the bacara remains strong, because the price respected SMA as support. Therefore, the bulls can try another pressure on resistance. A clean pause above the level would allow USD / CAD to target 13800 resistance. Moreover, it would strengthen the Bikovska bias.
On the other hand, if the resistance of the 1,3700 is held by the company, the price could be returned below SMA. In such a case, the bears would probably re-set the level of support from 1,3550.
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