USD/CAD fights to find acceptance above 1,4300 in the midst of slight weakness of the dollar

  • The USD/CAD attracts some buyers and breaks a three -day streak towards a minimum of more than a month.
  • Concerns about the commercial war between the US and Canada and the fall in crude oil prices weaken to CAD.
  • A modest USD setback from a maximum of several weeks limits to the torque before the US macroeconomic data.

The USD/CAD torque is based on the modest rebound from the previous day from the area of ​​1,4235, or a minimum of more than a month, and gains some positive traction on Thursday. Cash prices are kept in intradic earnings during the first half of the European session and, for now, there seem to have broken a three -day run streak, although the bulls seem to have difficulty finding acceptance above the 1,4300 mark.

The Canadian dollar (CAD) weakens in reaction to the announcement of the US president, Donald Trump, to impose 25% tariffs on cars imports, increasing the risk of a higher escalation of the commercial war between the US and Canada. In addition, uncertainty about Trump’s reciprocal tariffs on April 2 causes some benefits shots around crude oil prices, especially after the recent increase to a maximum of three and a half weeks reached Wednesday. This is considered another factor that weakens the CAD linked to raw materials and acts as a tail wind for the USD/CAD torque.

Meanwhile, the US dollar (USD) struggles to capitalize on the profits driven by the requests for requests for lasting goods than expected on Wednesday and goes back from a maximum of three weeks. The Federal Reserve reviewed its growth perspective in the midst of uncertainty about the impact of Trump’s commercial policies and pointed out that it would deliver two interest rate cuts of 25 basic points by the end of this year. This, in turn, limits the recent positive movement of the USD observed in the last two weeks and maintains a limit in the USD/CAD torque.

Looking ahead, the operators now expect the US economic agenda – which includes the publication of the Final GDP of the Fourth Quarter of the US, the usual initial weekly applications of unemployment subsidy and sales of pending homes. This, together with the Speeches of influential FOMC members, could boost the USD. Apart from this, oil prices dynamics could generate short -term trading opportunities around USD/CAD. However, the approach remains in the US Personal Consumption Expenditure Index (PCE), which should provide clues on the Fed fees clippings path.

FAQS tariffs


Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.


There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.


During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.

Source: Fx Street

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