USD/CAD Price Forecast: US-Canada trade war pressures Canadian Dollar
The Canadian Dollar (CAD) trades lower against the US Dollar (USD) on Thursday, with USD/CAD trading marginally higher to near 1.3886. The Loonie faces selling pressure as the ongoing trade war between the United States (US) and Canada has raised Ottawa's economic concerns.
The Canadian Dollar (CAD) experienced a decline against the US Dollar (USD) on Thursday, with USD/CAD trading closer to 1.3886. This downturn was driven by Canada's trade tensions with the United States, which have raised economic concerns in Ottawa. The Canadian Dollar emerged as the weakest against the Australian Dollar this week.
The price forecast for USD/CAD is influenced by the pending US Section 338 tariffs and Canada's retaliatory response, which may shave around 0.3 percentage points from GDP by 2027, according to TD Securities. The US Dollar showed marginal strength as investors awaited comments from Federal Reserve Chairman Kevin Warsh at the Jackson Hole Symposium.
On the technical side, immediate resistance for USD/CAD is near the 50.0% Fibonacci retracement and the 20-day EMA, while support can be found at the 61.8% retracement, 78.6% level, and the prior swing low.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
