Don’t miss this month’s edition of the George Davis Report, where George discusses the impact of reciprocal tariffs and changes to our USD/CAD forecast.
What you need to know:
US reciprocal tariffs on April 2 were larger and more widespread geographically than expected.
The potential upheaval to global supply chains and the growth outlook shook market confidence, leading to sharp selloffs in stocks and bonds (and the USD to a lesser degree).
Despite all of these negative factors, the impact for CAD was actually more positive, as Canada was exempt from any of the new reciprocal tariffs.
The USD/CAD response amplified the relative importance of broad-based USD direction as a key driver of USD/CAD.
With USD/CAD sensitivity to tariff risks eroding, we have made some changes to our USD/CAD forecasts.
For the trading range:
USD/CAD
Buyers
1.3900/1.4000
Sellers
1.4300/1.4400
