• USD/CAD edging higher, move largely a function of broader USD strength

• CAD showed limited reaction to tariff headlines - U.S. set to impose 50% tariffs from Aug 19

• Market conditioned to Trump’s “escalate to de-escalate” approach, dampening knee-jerk reactions

• Lingering doubts around legal enforceability of tariffs also keeping price action contained

• 1.40 seen as initial floor, with stronger support layered at 1.3930-67

• Spot testing 1.41, break higher brings 1.4140 into focus

• Clearance of 1.4140 opens extension towards 1.4250
USDCAD 5 minute chart


USDCAD daily chart


Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))