USD/CAD remains subdued near 1.4250 despite concerns over impending US auto tariffs

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

USD/CAD weakens as the US Dollar declines amid falling Treasury yields.


Global trade tensions escalate after US President Donald Trump announces a 25% tariff on auto imports.


Canadian Prime Minister Mark Carney condemns the US tariffs, calling them a “direct attack” on auto sector workers.


USD/CAD remains subdued for the fourth consecutive day, hovering around 1.4260 during Asian trading hours on Thursday. The pair is under pressure as the US Dollar (USD) weakens amid declining Treasury yields.


The US Dollar Index (DXY), which tracks the USD against six major currencies, is retreating from recent gains, trading near 104.30.

 Meanwhile, yields on US Treasury bonds stand at 4.0% for the 2-year note and 4.35% for the 10-year note at the time of writing.


Investors are closely watching key US economic data set for release later in the day, including weekly Initial Jobless Claims and the final Q4 Gross Domestic Product (GDP) Annualized report. Additionally, Friday’s release of the Personal Consumption Expenditures (PCE) report—the Fed’s preferred inflation gauge—will provide further policy insights.


However, USD/CAD’s downside may be limited as the Canadian Dollar (CAD) could face headwinds following new US trade measures. On Wednesday, US President Donald Trump signed an order imposing a 25% tariff on auto imports, effective April 2, with collections beginning the next day. A one-month reprieve will apply to auto parts imports.


However, parts originating from Canada and Mexico that comply with the United States-Mexico-Canada Agreement (USMCA) will be exempt until US Customs and Border Protection establishes a system to enforce tariffs on non-US parts, according to a White House fact sheet.


Reacting to the announcement, Canadian Prime Minister Mark Carney called the tariffs a “direct attack” on auto sector workers and is set to return to Ottawa to coordinate the government’s response with his cabinet, as reported by CNN Business.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
USD/CAD climbs to multi-week top, closer to mid-1.3900s amid sustained USD buyingThe USD/CAD pair is seen building on this week's recovery from the year-to-date low, around mid-1.3700s, and gaining positive traction for the third successive day on Friday.
Author  FXStreet
2 hours ago
The USD/CAD pair is seen building on this week's recovery from the year-to-date low, around mid-1.3700s, and gaining positive traction for the third successive day on Friday.
placeholder
EUR/USD fumbles again as trade deal hopes bolster Greenback bidsEUR/USD trimmed into the low end on Thursday, shedding a little over two-thirds of one percent from the day’s opening bids after US Dollar (USD) bids caught a broad-market boost following the tentative announcement of a pending trade deal between the United States (US) and the United Kingdom (UK).
Author  FXStreet
3 hours ago
EUR/USD trimmed into the low end on Thursday, shedding a little over two-thirds of one percent from the day’s opening bids after US Dollar (USD) bids caught a broad-market boost following the tentative announcement of a pending trade deal between the United States (US) and the United Kingdom (UK).
placeholder
AUD/USD moves below 0.6400 ahead of China’s trade balance dataThe AUD/USD pair continues its losing streak for the third consecutive session, trading near 0.6390 during Friday's Asian session. The Australian Dollar (AUD) remains under pressure due to stalled progress in US-China trade negotiations.
Author  FXStreet
3 hours ago
The AUD/USD pair continues its losing streak for the third consecutive session, trading near 0.6390 during Friday's Asian session. The Australian Dollar (AUD) remains under pressure due to stalled progress in US-China trade negotiations.
placeholder
EUR/USD faces pressure as US Dollar ticks higher, US-UK trade deal in focusEUR/USD ticks lower below 1.1300 during European trading hours on Thursday.
Author  FXStreet
18 hours ago
EUR/USD ticks lower below 1.1300 during European trading hours on Thursday.
placeholder
USD/CAD Price Forecast: Remains confined in a multi-week-old range; not out of the woods yetThe USD/CAD pair attracts buyers for the second successive day on Thursday and recovers further from the year-to-date (YTD) low, around the mid-1.3700s touched earlier this week.
Author  FXStreet
19 hours ago
The USD/CAD pair attracts buyers for the second successive day on Thursday and recovers further from the year-to-date (YTD) low, around the mid-1.3700s touched earlier this week.
Real-time Quote