Forex News: Canadian Dollar Slides As Trump Announces 35% Tariffs

Canadian Dollar Slides As Trump Announces 35% Tariffs On Canadian Imports

(RTTNews) - The Canadian dollar weakened against other major currencies in the Asian session on Friday, as Trump proposed 35 percent tariff on Canadian goods and warned that any fiscal retort from the country will be tacked onto the 35 percent set to take effect Aug. 1.

Reacting to the move, Canadian Prime Minister Mark Carney said that Canada has made vital progress to stop the scourge of fentanyl in North America and that his government will continue to defend workers and businesses.

Meanwhile, in an interview with NBC News published late Thursday, Trump talked about tariffs and sending Patriot missiles to NATO for Ukraine.

Trump floated 15 percent to 20 percent blanket tariffs on most trading partners, dismissing inflation concerns. Blanket tariffs are currently set at 10 percent.

On the status of Russia's war with Ukraine, Trump said he will make a major statement on Russia on Monday without giving specific details.

Crude oil prices fell amid concerns about a supply increase for August by OPEC, the huge crude stock inventory in the United States and intensifying U.S. tariff pressures. West Texas Intermediate crude for August delivery tumbled $1.81 to settle at $66.57 per barrel.

In the Asian trading today, the Canadian dollar fell to a 2-week low of 1.3731 against the U.S. dollar and nearly a 2-month high of 0.9023 against the Canadian dollar, from yesterday's closing quotes of 1.3656 and 0.9003, respectively. The loonie may test support near 1.38 against the greenback and 0.91 against the loonie.

Against the euro, the loonie slid to a 1-week high of 1.5968 from Thursday's closing value of 1.5979. On the downside, 0.91 is seen as the next support level for the loonie.

The loonie edged down to 106.58 against the yen, from yesterday's closing value of 107.12. If the loonie extends its downtrend, it is likely to find support around the 104.00 region.

Looking ahead, U.K. NIESR monthly GDP tracker for June, Canada jobs data for June, building permits for May, U.S. Baker Hughes oil rig count data, U.S. WASDE report and U.S. monthly budget statement for June are slated for release in the New York session.

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