USDCAD spikes larger as Trump implies will probably be a "letter" deal

The USDCAD moved larger (weaker CAD) following President Trump’s feedback that some commerce actions “might simply be a tariff” relatively than a negotiation, and that sure offers could also be dealt with “by letter.”

Technically, the pair had already been trending larger since bottoming on Wednesday. In immediately’s session, worth motion broke above the 100-hour shifting common (presently at 1.36388) and sustained momentum initially drove it to the 200-hour shifting common at 1.36801. Sellers leaned into that degree on the primary take a look at, resulting in a dip again towards the midpoint of July’s buying and selling vary at 1.36645.

Assist held at that midpoint, and the pair rebounded sharply—boosted additional by the tariff-related headlines. The rally prolonged right into a swing space between 1.3707 and 1.37112, the place sellers as soon as once more emerged, capping the upside and defining short-term danger.

The pair has since rotated again down towards the 200-hour shifting common. The important thing query now could be whether or not that degree can maintain as help and assist reestablish the upside momentum seen earlier within the day.

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This text was written by Emma Wang at investinglive.com.



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