There was a bit of confusion around the temporary suspension of US tariffs yesterday. Canada was not included in the Round of Reciprocal Tariffs announced on Liberation Day, but Treasury Secretary Scott Besent said the 10% base tariff applied both to Canada and Mexico, says Scotiabank’s currency strategy manager Shaun Osborne.
The body wins modestly in the day
“It turns out that this was incorrect, a reflection of how confusing is the formulation of policies at this time. Other tariffs, of course, remain in force. The CAD has supported all the recent uncertainty relatively well, despite the winds against the greatest volatility of the market and the weakest raw materials. The reduced differentials are providing some support to the CAD and helping to lower our estimation a little.
“The spot is quoting below the updated equilibrium estimate today (1,4128) and the USD undervaluation can strengthen the support for the USDCAD in the range of 1.40/1.41. The USD is directed towards a fourth weekly loss in front of the CAD and a weekly closure below 1,4107 (50% of 50% of the Rally of the USD of SEP/Feb) It is accumulating more downward pressure on the spot. “
“As it is, there is a clearer strengthening of the USD’s bearish trend in intradic and newspaper graphics, which suggests that the USD is at risk of re -testing the minimum last week at 1,4025/30 and making an attempt at 1,3945 (61.8%backward support). Note that the 200 -day MA is located at 1,4005.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
