USDCAD trades to a brand new low (increased CAD) regardless of menace of metal and aluminum tariffs

The USDCAD is buying and selling to a brand new session low regardless of the specter of 25% tariffs on all metal and aluminum imports. Final week, Pres. Trump introduced that they might impose a tariff of 25% on Mexico and Canada, however then gave a 30 day reprieve in the event that they shored up the border. Every nation pledged manpower and cash to guard the borders. The tariffs have been averted..

Nevertheless, over the weekend Pres. Trump stated that he would impose 25% tariffs on all metal and aluminum imports. Guess who’re the largest provider of US metal and aluminum?

In keeping with Reuters, the U.S. is extra closely reliant on imports with roughly half of all aluminum used within the U.S. being imported,

The overwhelming majority of imports for alumnum comes from neighbor Canada. At three.2 million tons final yr, Canadian imports have been twice the following 9 nations mixed.

As for metal, roughly 1 / 4 of all metal utilized in the US is imported, the majority of it from neighbors Mexico and Canada or shut allies in Asia and Europe like Japan, South Korea and Germany.

The transfer decrease within the USDCAD is defying these tariffs on the Canadian greenback.

Trying on the hourly chart above, the pair has reached a brand new low at 1.4313. The excessive for the day reached 1.4377 within the first hour of buying and selling immediately (within the Asian Pacific session).

The transfer decrease has now taken the worth again under the 100 hour MA at 1.43219. There’s an outdated swing space between 1.42905 and 1.43043. Beneath that stage sits one other swing space between 1.4260 and 1.4268 (see crimson numbered circles on the chart above) .

The value isn’t operating however the dip under the 100 hour MA is a detrimental shift. If extra momentum can push decrease, that swing space could also be reapproached.

Conversely, if the break fails, it might disappoint the sellers and convey again shopping for on tariff fears afterall.

This text was written by Emma Wang at www.ubaidahsan.com.



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