The mounting pressure on the Canadian dollar ahead of "Liberation Day" has sharply eased following the ISM data indicating a slowdown in the U.S. industrial sector (USDCAD: -0.5%).
According to the latest ISM report, the U.S. industrial expansion of the past two months has stalled. Various sectors are reporting a significant decline in orders from Canada, while price pressures are weighing on weakening demand and reduced production.
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Create account Try a demo Download mobile app Download mobile appThe Canadian dollar is also being supported by recent remarks from Mark Carney. The Prime Minister of Canada emphasized in Winnipeg his readiness to retaliate against new U.S. tariffs and pledged to make every effort to keep the Canadian automotive sector competitive with the U.S.
USDCAD has just given up on all recent gains, heading towards key suppor around 1.428. CAD's appreciation may be a sign that trade war risk has been already priced in by the investors. Source: xStation5
