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Forex Today: Canadian Dollar Slides as US–Canada Tariff Fight Escalates

By Adam Lemon
Chief Analyst and Director of Content

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked with...

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  1. The US Dollar is slightly firmer today after recent weakness, helped by safe-haven demand and a more hawkish view of the Fed's path ahead after recent FOMC minutes were released, but it has not yet reversed its broader bearish trend.

  2. The Canadian Dollar is the weakest major currency after the US threatened new 50% tariffs on Canadian autos, parts, and steel. USD/CAD rose sharply and remains a key Forex pair to watch for upside continuation, although any surprising tariff news could create sudden reversals. In the Forex market, today's Asian session was very quiet. The GBP/USD currency pair remains very close to its 6-month high and will also be in focus. The Australian Dollar may be getting a small boost from the RBA minutes released a few hours ago which showed the Bank was actively considering a rate hike.

  3. New US sanctions targeting Iran have increased geopolitical tension, but the market reaction has been muted. The measures focus on sectors including shipping, technology, gold, aviation, and digital assets. The sanctions are aimed to be secondary.

  4. Crude oil fell slightly despite the Iran news, with Brent near $92 and WTI near $85. Note that a daily chart of WTI Crude Oil shows the price rejecting the upper trend line of a symmetrical bearish price channel.

  5. Gold remains firmly bullish near $4,675, supported by lower Treasury yields, lingering US Dollar weakness, and safe-haven demand. Some trend or momentum traders may be involved already on the long side, but institutions will tend to want to wait for longer-term highs.

  6. Bitcoin remains relatively firm near $78,800 after a strong recent week. It is still consolidating bullishly, but volatility risk is elevated after the sharp advance. Ethereum has reached a new 6-month high price but is being held by resistance at $2,544.

Chief Analyst and Director of Content

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

As seen on: Pairs Of Aces, FX Street, FX Academy, TalkMarkets, Gold Eagle, Traders Union

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