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

USD/CAD

Overview
Today last price 1.3459
Today Daily Change -0.0003
Today Daily Change % -0.02
Today daily open 1.3462
 
Trends
Daily SMA20 1.3446
Daily SMA50 1.3392
Daily SMA100 1.334
Daily SMA200 1.3245
Levels
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

 

 

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