Announcement of New Tariffs Boosts the US Dollar
Yesterday, it was revealed that Donald Trump plans to introduce new 25% tariffs on cars not manufactured in the United States. This duty will be added to existing tariffs and is set to take effect on 2 April. The White House believes that these measures will support the US economy and, in the long term, create new jobs.
At the same time, critics warn that the new tariffs could trigger inflation and lead to a recession. Currently, markets are responding to the news with a strengthening of the US dollar.
USD/JPY
Following the formation of a bullish engulfing pattern on 11 March, USD/JPY buyers have managed to hold above the key resistance level of 150.00.
Technical analysis suggests that if the pair continues trading above 149.30149.00, further growth towards the 152.00151.20 range is possible. A break below 149.00 could trigger a new downward move, potentially leading to a retest of the March lows at 146.60.
Key events that may influence USD/JPY today:
- 15:30 (GMT+2) Core Personal Consumption Expenditures (PCE) Price Index (US)
- 15:30 (GMT+2) US GDP
- 15:30 (GMT+2) Initial Jobless Claims (US)
- 15:30 (GMT+2) US Retail Inventories (excluding autos)
USD/CAD
The USD/CAD pair continues to trade within the medium-term range of 1.45401.4230.
A break below the lower boundary of 1.4230 may lead to a test of the January low at 1.4160. If USD buyers manage to push the price back above 1.4300, a recovery towards 1.45801.4500 could follow.
Key events that may affect USD/CAD in the upcoming sessions:
- Today at 15:30 (GMT+2) Average Weekly Earnings (Canada)
- Today at 23:30 (GMT+2) US Federal Reserve Balance Sheet
- Tomorrow at 15:30 (GMT+2) Canadian GDP
Read more: https://fxopen.com/blog/en/ru-announcement-of-new-tariffs-boosts-the-us-dollar/
Text source: Forex Trading Blog
