The post USD/CAD slumps below 1.4300 as CAD capitalizes on Trump’s suspension of tariff orders appeared on BitcoinEthereumNews.com.

USD/CAD falls sharply below 1.4300 as the Canadian Dollar continues to advance on US President Trump’s decision to postpone tariffs on Canada. BofA expects US tariff threats to China will continue to persist until a new USMCA deal gets negotiated. Investors await the US ISM Services PMI and the ADP Employment data for December. The USD/CAD pair extends its losing streak below the key level of 1.4300 in Wednesday’s European session. The Loonie pair weakens as the Canadian Dollar (CAD) continues to gain, given that United States (US) President Donald Trump delayed his orders to impose 25% tariffs on Canada for 30 days. President Trump suspended orders after Canada agreed for criminal enforcement at borders to stop the flow of drugs and undocumented immigrants into the US. A suspension in tariff orders on Canada has forced market experts to revise the Canadian economic outlook, who were accounting for the impact of levies. While the Canadian Dollar has surged this week against the US Dollar due to a relief rally from Trump’s decision to put the tariff plan on hold, analysts at Bank of America (BofA) expect the rally is unlikely to sustain as US tariffs threats and headlines on Canada to persist until a “new United States-Mexico-Canada Agreement (USMCA) deal is negotiated”. This week, investors will focus on the Canadian employment data for January, which will be released on Friday. The employment report is expected to show that the economy added 25K workers, significantly fewer than 90.9K addition seen in December. The Unemployment Rate is estimated to have accelerated to 6.8% from the former release of 6.7%. The labor market data will influence market expectations for the Bank of Canada’s (BoC) monetary policy outlook. Currently, traders expect the BoC to cut interest rates by 25 basis points (bps) to 2.75% in…

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Filed under: News - @ February 5, 2025 12:22 pm