The Canadian dollar rises but faces resistance amid U.S. tariff uncertainty, limiting gains against the U.S. dollar.
Canadian Dollar Gains Limited Amid US Tariff Uncertainty
The Canadian dollar experienced an increase in value; however, uncertainty surrounding tariffs restrained gains.
The Canadian dollar (CAD) rose slightly but encountered obstacles as traders considered trade moves by the United States government. Conflicting messages from Washington made markets wary, leaving investors unsure about the severity of tariffs.
Recent signs suggested a shift towards trade actions. Now, there’s worry about the potential introduction of tariffs targeting specific sectors more broadly. This lack of clarity has prevented the CAD from seeing increases in value compared to the U.S. dollar (USD).
The USD/CAD pair is still trading above key levels at the moment. In the past week, the U.S. dollar faced challenges in maintaining its position above 1.44, leading to downward risks. The support level for this pair stands around 1.4240, with barriers expected around 1.4330 to 1.4340.
Market trends in the future may be influenced by trade policy announcements from the United States and how they affect the economy of Canada, so traders need to be vigilant about changes in policies that could impact the direction of the Canadian dollar (CAD).
