USD/CAD plummets to 1.3450 area on reports of US removing tariffs on Canada

  • The U.S. and Canada are said to close to a deal on steel/aliminum tariffs. 
  • US Dollar Index advances to 98 on upbeat consumer sentiment data.

The USD/CAD pair rose to its highest level since April 25 at 1.3513 in the early American session but made a sharp U-turn on the latest headlines surrounding the U.S.-Canada trade negotiations. As of writing, the pair was virtually unchanged on the day at 1.3458.

Several news outlets in the last hour reported that the U.S. was poised to remove the steel and aliminum tariffs on Canada and Mexico to provide a boost to the loonie. "High-level discussions to hammer out any final details are happening now,  and the deal could be announced as early as Friday," Canadian Broadcasting Corporation (CBC) reported today.

On the other hand, the greenback preserved its strength after the University of Michigan's Consumer Sentiment Index in the U.S. jumped to its highest level in 15 years at 102.4 in May from 97.2 in April. On the back of the upbeat confidence data, the US Dollar Index advanced to a fresh 2-week high and was last at 97.98, adding 0.16% on a daily basis. Commenting on the data, "Happiness has many definitions.  Surely the Michigan Consumer Sentiment reading for May, 102.4 the best score in over a decade, is one," said FXStreet senior analyst Joseph Trevisani.

Meanwhile, crude oil prices stay calm with the barrel of West Texas Intermediate moving sideways above $63, allowing the loonie to react to the trade headlines.

Technical levels to consider


Today last price 1.3459
Today Daily Change -0.0003
Today Daily Change % -0.02
Today daily open 1.3462
Daily SMA20 1.3446
Daily SMA50 1.3392
Daily SMA100 1.334
Daily SMA200 1.3245
Previous Daily High 1.3472
Previous Daily Low 1.34
Previous Weekly High 1.3506
Previous Weekly Low 1.338
Previous Monthly High 1.3522
Previous Monthly Low 1.3274
Daily Fibonacci 38.2% 1.3444
Daily Fibonacci 61.8% 1.3428
Daily Pivot Point S1 1.3417
Daily Pivot Point S2 1.3373
Daily Pivot Point S3 1.3346
Daily Pivot Point R1 1.3489
Daily Pivot Point R2 1.3516
Daily Pivot Point R3 1.356



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.


GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.


USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.


Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more