Forex Traders Focus on Trumps Tariff News
As April 2 approachesthe date when Trump's international trade tariffs are set to take effecttraders are increasingly concentrating on this highly uncertain issue.
Yesterday, the U.S. president stated that:
Tariffs on cars would be introduced "soon" (but not all possible tariffs would be imposed);
Some countries might receive exemptions;
Nations purchasing oil from Venezuela could face 25% tariffs.
Following these remarks:
Oil prices rose;
U.S. stocks gained as Wall Street (according to Reuters) interpreted the comments as a sign of flexibility in trade negotiations.
Given this backdrop, the EUR/CAD chart is particularly interesting, as both Europe and Canada frequently feature in news related to the White House's trade policies.
EUR/CAD Exchange Rate Today
As seen on the EUR/CAD chart, the pair has slightly declined at the start of the week, dipping towards 1.54450. However, market volatility remains high:
The pair has gained approximately 2.85% since early March;
The decline from Marchs peak is around 2.6%.
Technical Analysis of EUR/CAD
The pairs volatile price swings have formed a trend channel (marked in blue).
Notably, the 1.57750 level has shifted from support to resistance, signalling bearish dominance. This is further reflected in the price movement within the red channel. If bears maintain control, EUR/CAD may drop towards a support zone, which includes:
The median of the blue channel;
The 1.54000 support level, drawn from early Marchs local low.
Read more: https://fxopen.com/blog/en/oa-forex-traders-focus-on-trumps-tariff-news/
Text source: Forex Trading Blog
