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Message: [QUOTE="Zerologic, post: 240568, member: 126754"] [ATTACH type="full"]31142[/ATTACH] USD/CAD turmoil amid Trump's tariff threats against Canada On January 21 after Trump's inauguration, the USDCAD pair drew a candlestick resembling an inverted hammer, the price drew a bear candle with a small body and a long shadow at the top of the candle and a short shadow at the bottom of the candle. Price formed a high of 1.45147, a low of 1.42889, a close of 1.43170. Yesterday this pair tried to rise, drawing a bullish candle with half the length of the previous candle's body. USDCAD price formed a high of 1.43910 and a low of 1.43007 closing at 1.43809. After his inauguration as US president in 2025, Trump threatened to impose tariffs on Canada of 25% that would take effect in February. Canada exports almost all its oil to the United States and perhaps this is driving oil. Meanwhile, Canadian Prime Minister Justin Trudeau said on Tuesday that his government was ready to respond to all scenarios if Trump imposed tariffs on Canada. The overall appeal of the Canadian dollar remains weak against the US dollar, with investors forecasting the Bank of Canada to cut interest rates 25 basis points to 3% following the release of the Consumer Price Index (CPI) for December, which showed that annual inflation slowed to 1.8%. On the other hand, the Fed is predicted to maintain interest rates at its meeting on January 28-29. According to the CME group's Fedwatch tool, the probability of the Fed not changing interest rates is 99.5% and the probability of reducing interest rates is only 0.5%. Meanwhile, the dollar index (DXY) rose slightly from a low of 107,749 to 108,274. Today investors will also focus on the release of Canadian retail sales data and US unemployment claims in addition to President Trump's speech whose policies could affect financial markets. [/QUOTE]

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