USDCAD currency pair trend after US imposes 25% tariff on Canada
News:
🔆The Canadian dollar weakens as Donald Trump imposes 25% tariffs on Canada on February 1
🔆Monetary policy: The Bank of Canada (BoC) has cut its benchmark interest rate to 3.00% by January 2025, following previous cuts. This rate cut could weaken the CAD, while the US Federal Reserve (Fed) is also in an easing cycle.
🔆Oil prices: Canada is a major oil exporter, so oil price movements have a significant impact on the CAD. Oil prices have recently risen on expectations of higher demand from China, which could support the CAD.
Technical analysis:
🔆Long-term trend: USD/CAD continues its strong uptrend, especially after breaking out of its previous short-term trading range.
🔆Support and Resistance: If the uptrend continues, the next resistance level could be in the 1.4900–1.5000 range. Conversely, if there is a downside correction, the key support level to watch is 1.4280.
Future Outlook:
CAD is expected to strengthen in 2025 as lower interest rates stimulate economic growth and increase investor risk appetite. However, this outlook depends on the recovery of the global economy and demand for commodities, especially oil. Additionally, Canada is also considering a delicate tariff policy approach with the US to limit CAD weakness against the USD
Conclusion:
The USD/CAD pair is currently in a strong uptrend, supported by technical and fundamental factors. However, traders should be cautious and closely monitor economic developments, monetary policies and oil price fluctuations to make sound trading decisions.
🔆The Canadian dollar weakens as Donald Trump imposes 25% tariffs on Canada on February 1
🔆Monetary policy: The Bank of Canada (BoC) has cut its benchmark interest rate to 3.00% by January 2025, following previous cuts. This rate cut could weaken the CAD, while the US Federal Reserve (Fed) is also in an easing cycle.
🔆Oil prices: Canada is a major oil exporter, so oil price movements have a significant impact on the CAD. Oil prices have recently risen on expectations of higher demand from China, which could support the CAD.
Technical analysis:
🔆Long-term trend: USD/CAD continues its strong uptrend, especially after breaking out of its previous short-term trading range.
🔆Support and Resistance: If the uptrend continues, the next resistance level could be in the 1.4900–1.5000 range. Conversely, if there is a downside correction, the key support level to watch is 1.4280.
Future Outlook:
CAD is expected to strengthen in 2025 as lower interest rates stimulate economic growth and increase investor risk appetite. However, this outlook depends on the recovery of the global economy and demand for commodities, especially oil. Additionally, Canada is also considering a delicate tariff policy approach with the US to limit CAD weakness against the USD
Conclusion:
The USD/CAD pair is currently in a strong uptrend, supported by technical and fundamental factors. However, traders should be cautious and closely monitor economic developments, monetary policies and oil price fluctuations to make sound trading decisions.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.