↵

Photo by Michelle Spollen on Unsplash

The Canadian Dollar (CAD) struggled on Tuesday, briefly gaining ground against the US Dollar (USD). Risk-off flows returned to the forefront and kicked the Loonie back into the day’s opening bids just below 1.3700.

Tariff talk is back on top of the market headlines pile. Early this week, the Trump administration kicked the can down the road on its own self-imposed deadline to enact reciprocal tariffs that were announced in early April and then immediately delayed to July 9. The Trump team has now delayed the already-delayed tariffs to August 1, with President Donald Trump insisting that now, this time, there won’t be any further delays, and also added further tariff threats to the pile of import taxes that may or may not loom ahead.

Daily digest market movers: Canadian Dollar struggles to find gains amid rising risk aversion

• The Canadian Dollar remains on the low side of near-term market action as risk-off flows bolster the Greenback.
• The US Dollar’s ongoing downtrend against the Loonie could be nearing its end as investors and business operators both begin to buckle under the weight of an amorphous trade outlook.
• President Trump has announced double-digit tariff increases against a handful of countries, including South Korea and Japan, to take effect on August 1.
• President Trump also announced a 50% tariff on all copper imports to match already-standing steel and aluminum tariffs.
• Despite announcing that the copper tariffs would begin “today”, nobody is aware of whether or not that will actually come to pass.

Canadian Dollar price forecast

Despite holding below a descending trendline near 1.3700, USD/CAD is beginning to tilt toward the high side. Daily candlesticks are poised to mark in a double bottom chart pattern, signaling that a long-term turnaround in ongoing Greenback weakness could be approaching over the horizon.

USD/CAD daily chart

(Click on image to enlarge)

More By This Author: