Canadian dollar dives on Trump timber tax reports

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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.

More: CAD: Canada Outperformer, CAD Underperformer: Where To Target? – CIBC

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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