CAD Canadian dollar – Canadian dollar weakens repeatedly, focus on Canadian interest rate meeting and US inflation data

The U.S. dollar weakened against the Canadian dollar on Tuesday after rising to a one-week high after U.S. President Trump imposed additional tariffs on Canada. Trump doubled planned tariffs on all steel and aluminum imports from Canada to 50 percent after Ontario imposed a 25 percent surcharge on electricity shipped to the United States. However, Trump said he "might" reduce recently increased tariffs on Canada after Ontario suspended a surcharge on electricity exports to the United States.

The Bank of Canada will announce its monetary policy decision on Wednesday. As the latest U.S. tariff measures may put Canada's economic recovery at risk, the market has high expectations for the Bank of Canada to cut interest rates again. As can be seen from the technical chart, both the RSI and the stochastic index have rebounded from the oversold area, and the exchange rate can temporarily hold at the 100-day moving average. If it can hold steady, the US dollar is expected to continue to rebound. The current 100-day moving average is at 1.4220. The greater support is estimated at 1.4140 and 1.40 levels, and the key reference will be the 250-day moving average of 1.3870. As for the upward resistance level, we will first look at 1.4450 and 1.4550, and the next level is expected to be 1.46 to 1.48.

Estimated range:
Resistance 1.4450 – 1.4550 - 1.4600 – 1.4800
Support 1.4220 – 1.4140 – 1.4000 – 1.3870

This week's news:
11/3
Trump slammed Canada for retaliating against his previous tariffs by doubling import taxes on Canadian steel and aluminum to 50%.

Focus:
Wednesday:
Bank of Canada interest rate decision (21:45)

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