- The Canadian dollar has fallen to the lowest value for over two decades.
- Canada immediately turned to Trump’s import tariffs with its own export tariffs.
- Markets moderated Loon, but CAD remains for many years.
The Canadian dollar (CAD) fell to the lowest offers in relation to the American dollar (USD) in 21 years at the beginning of the commercial week after the US and Canada went to trade tariffs, which will support key aspects of both economies. General market moods regained the ground after Mexico was able to negotiate a monthly suspension of weapons at American tariffs focused on goods imported from Mexico, but Loon still has been testing the lowest offers since 2020.
The US imposed a flat 25% import tariff on all goods crossing the border from Canada at the weekend, although US President Donald Trump threw pressure to reduce the oil tariff led by Canadian to 10%. Canada immediately responded to its own export taxes on goods and energy sold to the US, weighing President Trump to take a threat to double import fees for Canadian goods, if Canada took revenge on his tariffs. According to some analysts, Tit-to-Tat sales between the USA and Canada may add another 0.7% to basic inflation under the leadership of demand in the USA.
Daily Digest Market Movers: Trade War 2.0 continues when the USA bills for its own companies
- The Canadian dollar reached 1,4800 compared to the American dollar for the first time in over two decades.
- Markets have regained the basis, but USD/CAD still testing on a pandemic, because the market moods maintain the offer in green.
- The monthly relief in the USA “Tariffs on Mexico were awarded because Mexico President Claudia Sheinbaum agrees to negotiate with the cavalcade of President Trump about very critical workplaces, but little practical experience. Canada decided to take revenge on export fees to exactly the same goods to which the US will charge import taxes.
- President Trump promised double tariffs if Canada or Mexico take revenge.
- Donald Trump’s tariffs are expected to crunch Canadian economy, and also contribute to targeted unemployment in the United States and significantly contribute to the basic inflation indicators in the USA.
- By decaying inflation and a possible boost in the costs of crude oil in the USA is a bad way to reduce rates from the Federal Reserve (FED).
The price of the Canadian dollar price
The Canadian dollar was in the 1,4800 throw compared to the American dollar on early Monday, before the markets were able to pump the brakes. Loon regained some feet after falling to 21 years, in a tandem with a slight softening in green.
USD/CAD still trades to almost five -year maximas near the 1.4600 handle, when Greenback accelerates to the sixth session in a row with Loon. USD/CAD increased by more than 10% from below to the lowest level 1.3420 in September last year.
