CAD: Lumber Tariffs The 'Tip Of The Iceberg'?

CIBC World Markets Research notes that CAD has extended its recent weakening trend overnight, with a 'not-too-surprising' move by the US to impose duties on Canadian softwood lumber being part of the backdrop.

In that regard, CIBC argues that given that Lumber products represent about 3% of total goods exports, its broader macro impact is in the decimal places of GDP.

As such, CIBC believes that it's likely that the reaction today is on fear that the lumber duties are the'tip of the iceberg', and more telling will be how the broader NAFTA talks go.
Source : https://www.efxnews.com/story/35887/cad ... eberg-cibc

USD/CAD On The Verge Of A Major Break

A break of resistance in USD/CAD was not sustained on Tuesday but a retreat was short-lived as the exchange rate closed above the level again today. New developments in relations between the United States and Canada as well as a poor reaction in oil prices to this week’s inventories report hint at a potential tumble in the loonie in the weeks to come.

There were little concerns at the start of the year that a Trump presidency would threaten the Canadian economy. This was confirmed by a meeting held between Canadian Prime Minister Trudeau and US President Trump in February as Trump affirmed that NAFTA renegotiations were focused on concerns south of the border.
Read more : http://www.economiccalendar.com/2017/04 ... jor-break/

USD/CAD Holds Above Important Resistance

News that Donald Trump won’t terminate NAFTA, or at least not yet, triggered a sharp drop in USD/CAD today. The decline was not sustained as the pair found support from a declining trendline that had acted as resistance earlier this week and proceeded to rally to a fresh 14-month high.

President Trump tweeted that he spoke to the President of Mexico and the Prime Minister of Canada and hopes to reach a deal rather than withdrawing from NAFTA. Trump did not remove the option to terminate the agreement but his comments will ease near-term concerns somewhat.
Read more : http://www.economiccalendar.com/2017/04 ... esistance/

USD/CAD Weekly Forecast May 1-5

Politics have dominated USD/CAD as increasing concerns over US protectionism since the Bank of Canada’s warning to the Senate committee on April 13th have attributed to a significant drop in the loonie. In a two-week rally, the pair has gained 2.4% and is seen trading at 14-month highs.

President Trump magnified trade tensions in the past week as he focused on NAFTA negotiations. He announced a tariff to Canadian lumber imports and indicated that the US dairy industry was being treating unfairly in the early week. A White Official stated that the US was looking to withdraw from NAFTA but a tweet from Trump in the second half of the week eased tensions as he indicated that he would be willing to negotiate.
Read more : http://www.economiccalendar.com/2017/04 ... t-may-1-5/

Canadian April PMI Index Strengthens To 6-Year High Of 55.9

The Canadian Markit PMI index strengthened to 55.9 for April from 55.5 in March. This release was above the 50.0 threshold for the 14th successive month and also the strongest reading for six years.

Production growth remained firm at a pace only slightly below the 40-month high recorded for March while new orders increased at the fastest pace since November 2013. Domestic sales improved while there was a rebound in energy-sector spending and moderate increase in export orders.
Read more : http://www.economiccalendar.com/2017/05 ... h-of-55-9/

USD/CAD Regains Upside Momentum As Oil Prices Fall Through Major Support

USD/CAD is on track to post an eight consecutive day of gains which is the longest winning streak since January 2016. The pair had given some indications of exhaustion over the last few sessions but saw renewed momentum as oil prices have broken below a significant support confluence.

A rising channel in WTI crude oil prices (USOIL) had contained price action since August, ahead of today’s bearish break. Adding confluence is the 200-period daily moving average, found slightly above the lower line of the channel.
Read more : http://www.economiccalendar.com/2017/05 ... r-support/

USD/CAD Posts Ninth Consecutive Day Of Gains, Longest Streak Since January 2016

USD/CAD has been facing resistance from the upper bound of a rising channel for most of the day. The pair had declined in early North American trading but was lifted higher following the Fed meeting to close in the green. The pair has posted gains in the past nine straight sessions which is the longest consecutive daily gain since January 2016.

The Federal Reserve was optimistic which caught markets off guard as recent data pointed to weak growth in the first quarter as well as a drop in inflation. The central bank did not appear concerned and indicated that the weakness in growth was transitory and expected to gradually pick up.
Read more : http://www.economiccalendar.com/2017/05 ... uary-2016/

USD/CAD Bullish Streak Continues As Oil Prices Plunge

USD/CAD is on track to post its tenth consecutive daily gain which is the longest streak since January 2016. The pair gained upside momentum in North American trading as oil prices fell under pressure.

WTI crude oil prices fell below a critical support confluence earlier this week to set a bearish tone. Wednesday’s Fed meeting triggered a small and brief recovery and selling pressure resumed slightly ahead of the North American open today. Oil prices (USOIL) were last seen trading at $45.37 which reflects a loss of 4.5%, the largest loss since early March. USOIL will likely to close the day for a fifth consecutive daily loss.
Read more : http://www.economiccalendar.com/2017/05 ... es-plunge/

  1. Similar Topics

    1. Oil news

      9 Replies 818 Views

      by ChuChu Rocket, Wed Oct 31, 2018 4:44 pm in Forex Fundamentals & News

      9 Replies
    2. Integrate news to EA

      3 Replies 618 Views

      by Cladi39, Tue Sep 04, 2018 9:52 pm in Coding Help

      3 Replies

Return to “Forex Fundamentals & News”

Who is online

Users browsing this forum: CommonCrawl [Bot] and 2 guests