USDCAD remained relatively calm as Canadian election results began to come in. Mark Carney is projected to win, and the initial reaction was bullish for the Canadian dollar. However, the gains were short-lived, as the victory margin appears narrow.
Canada stands at a pivotal moment in its history. The newly announced tariffs will likely deal a heavy blow to the economy. Markets are cautious, recognizing that a slim majority could complicate budget negotiations and legislative decisions in Parliament. On the other hand, Carney’s background as a former central bank governor could provide economic credibility during a potential slowdown.
Carney stated, "We are over the shock of American betrayal. But we should never forget the lessons." He is expected to pursue damage-control with the U.S. through negotiation, while simultaneously turning toward the EU to boost trade. Although this blow may prove beneficial for Canada in the long run, the coming years could present serious challenges.
From a combined perspective including technical and fundamental side, the bullish trend channel in USDCAD may remain intact for now. The lower boundary of the four-year trend lies around 1.37. As long as this trendline holds, dips may present buying opportunities. For any meaningful upward movement, the 1.3670–1.37 zone must be clearly broken with multiple daily closes above. Until a breakout or breakdown occurs, range-bound and uncertain price action may persist between these levels.
Canada stands at a pivotal moment in its history. The newly announced tariffs will likely deal a heavy blow to the economy. Markets are cautious, recognizing that a slim majority could complicate budget negotiations and legislative decisions in Parliament. On the other hand, Carney’s background as a former central bank governor could provide economic credibility during a potential slowdown.
Carney stated, "We are over the shock of American betrayal. But we should never forget the lessons." He is expected to pursue damage-control with the U.S. through negotiation, while simultaneously turning toward the EU to boost trade. Although this blow may prove beneficial for Canada in the long run, the coming years could present serious challenges.
From a combined perspective including technical and fundamental side, the bullish trend channel in USDCAD may remain intact for now. The lower boundary of the four-year trend lies around 1.37. As long as this trendline holds, dips may present buying opportunities. For any meaningful upward movement, the 1.3670–1.37 zone must be clearly broken with multiple daily closes above. Until a breakout or breakdown occurs, range-bound and uncertain price action may persist between these levels.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.