The Canadian dollar (CAD) has weakened in response to the news about reciprocal tariffs on steel and aluminum to the US which represent approximately 5% of the total exports to the US, says Shaun Osborne, head of FX strategy of Scotiabank.
Low performance of the Canadian dollar on the day
“There are significant consequences for both countries. The CAD retreated to the upper part of 1.43 in the Asian session, but since then it has recovered approximately half of that loss to stabilize in the lower/average of 1.43 while the markets expect developments. Friday’s Employment Employment Report reflected another decent gain in jobs in January and a very solid (0.9%) in the hours worked throughout the economy, which suggests a firm impulse of growth in early 2025 despite the hyperfoco in The tariffs. ”
“While concerns about tariffs remain essential for policies responsible at this time, evidence of a very firm growth impulse at the end of last year and in the first quarter suggests that the bank can afford to wait If more accommodation is needed. but a little below, the estimated fair value (1,4387 today). ”
“The signals of the graph were purely bearish for the USD during the past week. The spot developed a” surface ‘bassist line in the weekly candle chart and a week of key reversion in the analysis of regular’ graphics. The support indicated in 1,4250/75 is still relevant to the USDsince the recent minimums of the USD coincide with the 38.2% setback of the September USD rally/January (1,4260). A thrust below the upper area of ​​1.42 points to an additional drop of the USD to the area of ​​1.40/1.41. The resistance is 1,4375/80, where the USD reached its maximum point during the night, and 1,4450/75. “
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.
