USD/CAD spikes on Trump-Trudeau stand-off and 20% tariffs on Canadian lumber


Currently, USD/CAD is trading at 1.3552, up 0.40% on the day, having posted a daily high at 1.3556 and low at 1.3497.

Trump's administration plans to impose 20% tariff on Canadian soft lumber imports - DJ

USD/CAD has rallied out of the tight ranges of the US market. USD/CAD just jumped 40 pips on the back of news hitting the wires that Trump plans to impose 20% tariff on Canadian soft lumber imports. Trumps relation with Prime Minister Justin Trudeau who is sticking to his guns in respect to Trump's pressures of late over such industry as 
energy, lumber, and dairy after Trump recently said that Canadian dairy policies were a “disgrace” to U.S. farm workers.

USD/CAD levels

Near-term support comes in at 1.3420 while the market is better bid with the medium term MA’s bullishly aligned as spot takes on the mid point of the 1.35 handle. 1.3580 is on the cards now we are at 2017 fresh highs, so a test of 1.3580 opens 1.3600. 1.3409 holds the downside target. Analysts at Brown Brothers Harriman offered their analyses, “The technical indicators point to additional US dollar strength, with CAD1.36 being the next obvious target. In addition to corresponding to the highs from Q4 16, it is also the 50% retracement objective of the US dollar slide from the January 16 high near CAD1.4700.  The greenback's sharp advance is forcing the Bollinger Band to widen. The upper band is found near CAD1.3500.”

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD ignores weak Aussie retail sales data, trades near 0.7440

AUD/USD trades near 0.7430, representing a 0.84% weekly gain. The bearish US dollar sentiment helps the AUD/USD pair shrug off the weaker-than-expected Aussie macro data released soon before press time and consolidate near 0.7440

AUD/USD News

USD/JPY: Bearish bias across Monthly, Weekly charts

USD/JPY trapped between daily support and resistance against bearish backdrop. Yen is under pressure across the longer-term time frames and is trending within a weekly channel to the downside.

USD/JPY News

Gold fades upside momentum towards $1,850 amid mixed catalysts

Gold prices ease from $1,842.36 as risk-on dwindles. The yellow metal rose to the nine-day high the previous day as the US dollar weakness, coupled with the market optimism, favored the bulls.

Gold news

WTI bulls ignore downbeat comments from Russia’s Novak, eye $46.00

WTI wavers near the upper end of one-week-old bullish flag. The black gold remains positive on a daily basis while taking rounds to the November month’s high, also the highest since March. Risk-on mood, US dollar weakness favor the commodities, US employment data awaited.

Oil News

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures