CAD slips to minor new low on USD on tariff news – Scotiabank

Source Fxstreet

It’s back to square one for the Canadian Dollar (CAD) after gaining to the mid/upper 1.42s, if only briefly yesterday. Gold is up but energy prices have dropped in response to the renewed tariff threat. Yesterday’s Bank of Canada Business Outlook Survey reflected a sharp uptick in expected sales and generally firmer business sentiment, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

CAD underperforms on the day

“Given the timing of the survey, businesses were likely cheered by lower interest rates at home but still processing what the outcome of the US election might mean for Canadian exporters. Inflation expectations widened—a greater proportion of respondents expected inflation to return to low levels (1-2%) but the number expecting somewhat higher prices also increased. Meanwhile, there is an unusually wide range of expectations for this morning’s CPI data.”

“The consensus is for a 0.4% decline on the month but the range of estimates is 0.0% to –1.5%; Scotia is at –1.0%. The issue here may be how to account for the limited tax holiday that the government introduced last month, balanced against signs (from the jobs data) that the economy picked up a little more momentum late last year. Still, assuming data shows Y/Y inflation maintaining recent progress, markets are likely to add to conviction that the BoC will cut on January 29th (around 19bps priced in).”

“The high volatility seen in the past 24 hours may continue in the near-term. USD losses yesterday reversed, and more, overnight to take spot to a high just above 1.45 briefly. These sorts of price swings can sometimes characterize a market that is about to reverse direction but conviction around a reversal in USD strength should remain in check for now. Broadly, resistance is 1.47. Support is 1.4250.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Nvidia stock sinks 4% as Trump’s tariff plans rattle AI tradeNvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
Author  NewsBTC
Apr 01, Tue
Nvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
placeholder
Bitcoin Price Bounces Back—Can It Finally Break Resistance?Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
Author  NewsBTC
23 hours ago
Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
placeholder
Bitcoin Price Struggling but Short-Term Holders Might Be Setting the Stage for $150KBitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
Author  NewsBTC
18 hours ago
Bitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
placeholder
U.S. March Nonfarm Payroll Preview: Even If Data Aligns with Expectations, Financial Markets May Not Escape the Fate of VolatilityOn 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
Author  TradingKey
17 hours ago
On 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
placeholder
Gold price stabilizes ahead of Trump's tariffs announcement on “Liberation Day”Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
Author  FXStreet
16 hours ago
Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
Related Instrument
goTop
quote