Trump’s Tariff Threat: USD/CAD Hits Three-Week High
Trump’s Tariff Threat: USD/CAD Hits Three-Week High
As we reported on 3 February, Trump’s tariffs pushed USD/CAD to a 22-year high.
However, a one-month tariff delay led to a sharp drop, sending USD/CAD to its 2025 low near 1.41550. As the end of the delay approaches, the pair has been climbing again since mid-February (as shown by the arrow).
Yesterday, President Trump confirmed that his proposed 25% tariffs on Mexican and Canadian goods will take effect on 4 March. This dashed hopes for another delay and triggered a breakout above the 1.43600 resistance level.
Technical Analysis of USD/CAD
Above current levels, key resistance lies at 1.44600, which has held firm since mid-December. However, drastic measures from Trump’s administration could drive further price movement within the blue-marked channel.
Expect volatility spikes ahead of Canada’s GDP release, scheduled for today at 16:30 GMT+3.
Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
As we reported on 3 February, Trump’s tariffs pushed USD/CAD to a 22-year high.
However, a one-month tariff delay led to a sharp drop, sending USD/CAD to its 2025 low near 1.41550. As the end of the delay approaches, the pair has been climbing again since mid-February (as shown by the arrow).
Yesterday, President Trump confirmed that his proposed 25% tariffs on Mexican and Canadian goods will take effect on 4 March. This dashed hopes for another delay and triggered a breakout above the 1.43600 resistance level.
Technical Analysis of USD/CAD
Above current levels, key resistance lies at 1.44600, which has held firm since mid-December. However, drastic measures from Trump’s administration could drive further price movement within the blue-marked channel.
Expect volatility spikes ahead of Canada’s GDP release, scheduled for today at 16:30 GMT+3.
Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.