📉 USDCAD Breaks Support On Tariff Delays

The Canadian dollar (CAD) is strengthening sharply against the US dollar (USD) following a recent CNBC report stating that broad tariffs on products from Canada and Mexico will be postponed until April. Nevertheless, Donald Trump is scheduled to carry out the press conference at 6pm GMT, where he is expected to address the reciprocal tariffs on trade partners that, according to his belief, are overly charging the US-made goods. Considering Trump's recent claims about US banks being worse off in Canada, the conference will likely stir up the market sentiment regarding the USDCAD.

The USDCAD exchange rate has fallen below a key support level, trading at its lowest in two months around 1.4228. Source: xStation5

Pressure on the Canadian dollar significantly eased on February 3 when the first tariff package - 25% on all goods and 10% on energy resources - was postponed by 30 days. The CNBC report cools the bullish sentiment on the currency pair further down, especially since the April tariffs are set to be introduced via a "presidential memorandum," which holds a lower status than the executive orders signed by Trump in recent weeks.

The report also states that the revised tariff packages will include certain exemptions. Any concessions would sharply contrast with Donald Trump's earlier rhetoric, as he had insisted at the start of the week on pursuing a protectionist trade policy with "no exemptions and no exceptions."