The Trump administration seemed to have a cuddly relation with Canada while bashing Mexico on trade. This has probably changed. According to reports, the Trump administration is set to announce a retroactive tax on lumber.
President Donald Trump said that Canada treated the US unfairly and took advantage. He recently complained about the mistreatment of Wisconsin’s dairy farmers by Canada. Canadian Prime Minister Justin Trudeau responded by mentioning the trade surplus the US has with Canada on milk.
A worsening of trade relations is worse for Canada. The nation north of the border is smaller than the US and dependent on its southern neighbor for exports.
USD/CAD on the move
Dollar/CAD has certainly awakened. It made a round trip to the downside, slipping all the way to 1.3410 before rising back to tackle the 1.35 level. The reports about the tax sent the pair to a new high of 1.3565. Further resistance awaits at 1.36. Support is at 1.3540.
Related Posts
Markets Take A Break As Fed Looms
S&P 500 And Nasdaq 100 Forecast – February 5, 2016
China’s Middle Class Has Become A Major Pillar Of Its Economy
U.S. Workforce Recovery – Wednesday, Nov. 8
WTI Crude Oil And Natural Gas Forecast – January 14, 2016
How To Take Advantage Of Multi-Week Correction In Gold And Silver
Leave A Comment