USD CAD

Key reversal in play for USD/CAD—Friday’s jobs reports could determine whether the Loonie’s comeback sticks.

As you’d expect, volatility has been contained ahead of NFP, but implied volatility has blown out. The 1-day IV for USD/JPY is nearly twice its 10-day average, with GBP/USD and EUR/USD around 50% more than usual.

USD/CAD saw pandemonium on the open as the pair pushed a fresh 20-plus year high before scaling back. Tariffs have been delayed but not eliminated, and the focus now shifts to employment reports out of both the U.S. and Canada set for release tomorrow.

USD/CAD has declined more than 3% over the past three sessions, with movements favoring the Canadian dollar.

Given that commodity currencies such as AUD/NZD and NZD/USD have succumbed to USD strength for the best part of four months, the idea of a correction may not be overdue. Add into the mix bullish divergences on net-short exposure and false break of key lows, perhaps one is already underway.

The budding trade war and developments on the tariff front could well outweigh the modest historical seasonal tendencies in February for forex pairs like EUR/USD, GBP/USD, and USD/JPY.

USD/CAD is poised to mark the largest weekly-range in nearly five-years as the Trump tariff stay sparks reversal. Battlelines drawn on the short-term technical charts.

Trump volatility is back and the USD has put in wide swings on the back of the tariff topic, and Europe still seems in the President’s crosshairs which could keep the DXY volatility flowing.

The Trump administration has officially confirmed that new tariffs will take effect on Saturday, February 1, including a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods - see how it's impacting markets.

Well, Trump's tariffs are not going away. In fact, they're on Canada's doorstep. And that was enough to send USD/CAD to a 5-year high late in the day on Thursday, which only adds to the excitement of month end flows and messy price action.

If my short bias for USD/CAD and long for USD/JPY come into play, it assumes CAD/JPY could outperform USD/JPY during a bout of yen weakness.

USD/CAD seems to be unfazed by the Bank of Canada (BoC) rate cut as it consolidates ahead of the Federal Reserve interest rate decision.

USD/CAD gives back the advance from earlier this week even as US President Donald Trump warns of the ‘tremendous deficit with Canada.’

CAD-weakness has helped to bring a price increase for Tesla products in Canada, and this serves as example of how a weak currency can sow the seeds of inflation.

EURUSD and USDCAD: EURUSD is stabilizing near the 1.04 zone, while USDCAD is holding near the 1.440 zone. Tariff risks, monetary policies, and economic negotiations are expected to lead to concrete breakouts, as markets await clear policies from the White House.

The USD is starting Trump’s term with a pullback, so far, and that’s helped to boost equity markets following last week’s massive SPX rally.

USD/CAD spikes to a fresh monthly high (1.4517) as US President Donald Trump plans to impose a 25% tariff on Canadian goods starting February 1.