The post USD/CAD jumps to near two-decade high, around mid-1.4700s on Trump’s trade tariffs appeared on BitcoinEthereumNews.com.

USD/CAD rallies hard in reaction to Trump’s trade tariffs on Canada, Mexico, and China.  The risk-off impulse lifts the USD back closer to a two-year top and weighs on the major. The divergent BoC-Fed policy outlooks contribute to the momentum and favor bulls.  The USD/CAD pair builds on last week’s breakout momentum above a short-term trading range and gains strong positive traction during the Asian session on Monday. The momentum lifts spot prices to mid-1.4700s, or the highest level since April 2003, and is sponsored by the launch of US President Donald Trump’s tariff trade war.  Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting on Tuesday and declared that they would remain in place until the countries stem the flow of illegal drugs and immigrants into the US. The announcement tempers investors’ appetite for riskier assets and provides a strong boost to the safe-haven US Dollar (USD). In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, jumps back closer to over a two-year top touched in January and acts as a tailwind for the USD/CAD pair.  The Canadian Dollar (CAD), on the other hand, is weighed down by the Bank of Canada’s (BoC) dovish move last week, to cut interest rates for the sixth time in a row since June and announced an end to its quantitative tightening program. This marks a big divergence in comparison to the Federal Reserve’s (Fed) hawkish pause, which favors the USD bulls and suggests that the path of least resistance for the USD/CAD pair remains to the upside. Adding to this, the recent decline in Crude Oil prices validates the near-term negative outlook for the commodity-linked Loonie. US Dollar PRICE Today The table below shows the percentage change…

---

Filed under: News - @ February 3, 2025 1:13 am