Pres. Trump to put 25% tariff on Canada and Mexico The USDCAD spike higher

Pres. Trump says that he will put a 25% tariff on Canada and Mexico citing fentanyl and border security. Trump said that oil would not be a part of the 25% tariff. However, Trump is now saying that they will decide on Thursday night whether to impose tariffs on oil. Trump says that oil price is a factor in tariff determination. OK Well the price is at $72.83 now. Is that good enough?

Trump also assesses his 2nd presidential memorandum directing FAA to assess damage from DEI policies and ensure competence in hiring. HMMM. Wonder what that might say?

The USDCAD has run higher on the news with the price spiking to a high of 1.4594. That took the price above the high price from last Tuesday at 1.4514. The prices currently trading at 1.4535 in volatile trading. Staying above the 1.4514 is a bullish clue.

The price is also extended outside of the “red box”, that has defined most of the trading range going back to December 17. The high of that red box comes in at 1.4466.

Stocks are also turned negative with the Dow industrial average now down -0.16%, and the NASDAQ index down -0.15%. The S&P index is unchanged.

Other currency pairs are also seen more dollar buying.

EURUSD has moved below the 50% midpoint of the range since 2022 at 1.0405 and also the 30.2% retracement of the move up from the January low to the January 9 and 1.0396, but could not extend below the low from yesterday at 1.03814.

This article was written by Greg Michalowski at www.forexlive.com.