The pair climbs above 1.4100 after the White House imposes 50% tariffs, sparking trade tensions and a loonie sell-off.
USD/CAD advanced to 1.4100, up 0.2% on the day, extending a rebound from last week’s 50-day EMA support near 1.4050. The move follows the US announcement of 50% tariffs on most Canadian imports, framed as retaliation for alleged trade discrimination.
The pair had fallen from a year-to-date high of 1.4250 in July before stabilizing at its 50-day EMA. Tuesday’s tariff news reversed the London session’s drift toward 1.4050, with traders interpreting the move as a USD-positive development.
Canada responded by scheduling accelerated trade talks with Washington, avoiding immediate retaliation. The US Trade Representative indicated broader tariff actions against multiple countries may follow.