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USD/CAD dives to near 1.4100 as the US Dollar faces a bloodbath. Trump’s tariffs have fuelled risks of a US economic recession Investors await the US ISM Services PMI and the NFP data for March. The USD/CAD pair faces a sharp sell-off and slides to near 1.4100 during European trading hours on Thursday. The Loonie pair weakens as the US Dollar (USD) nosedives after the release of the reciprocal tariff plan by United States (US) President Donald Trump on Wednesday. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, is down over 2% to near 101.30. Investors have dumped the US Dollar as they have become increasingly confident that Trump’s tariffs will be unfavorable for the US economy in the near term.the Market experts believe that worse-than-expected tariffs announced by Trump have exposed the US economy to a recession. Trump’s protectionist policies are expected to be inflationary for the US economy. Such a scenario will diminish the purchasing power of households, potentially weighing on demand for durable goods. Going forward, the next trigger for the US Dollar will be the US Nonfarm Payrolls (NFP) data for March, which will be released on Friday. In Thursday’s session, investors will focus on the ISM Services Purchasing Managers’ Index (PMI) data for March, which will be published at 14:00 GMT. The Services PMI is estimated to have grown at a slower pace to 53.0 from 53.5 in February. Meanwhile, the Canadian Dollar (CAD) underperforms its peers even though Donald Trump has exempted Canada and Mexico from 10% baseline tariffs that are applicable across all trading partners. The 10% tariff would take effect only when the original 25% duties Trump slapped on Canadian and Mexican imports are terminated or suspended. US Dollar FAQs The US Dollar (USD) is the…

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Filed under: News - @ April 3, 2025 1:28 pm