Canada aims to strengthen ties with Europe and the UK, as stated by Foreign Minister Joly following the G7 meeting. Coordination on tariff approaches with Mexico is also planned.
On issues concerning Ukraine and the Middle East, the emphasis is on maintaining a unified G7 stance. Support for a two-state solution is expected in the G7 statement.
The USDCAD has decreased slightly and is now below its 100-hour moving average of 1.44167. The 200-hour moving average stands at 1.43921, which is just above the 38.2% retracement level since February, recorded at 1.43916.
Economic And Diplomatic Relations
Joly’s remarks highlight a growing push to deepen economic and diplomatic relations with Europe and the UK. This suggests upcoming policy shifts that may influence trade and investment flows. Additionally, coordination with Mexico on tariff strategies points to ongoing adjustments in North American trade policy, which could influence market expectations around supply chains and costs.
Regarding Ukraine and the Middle East, the focus remains on presenting a unified position within the G7. Reinforcing a two-state framework aligns with broader diplomatic efforts, aiming to maintain stability in discussions on long-standing conflicts. Markets will likely be watching for any deviations from consensus, as they could impact geopolitical risk assessments.
Currency movements reflect these developments. The USDCAD has moved slightly lower, now beneath its 100-hour moving average of 1.44167. The 200-hour moving average, currently at 1.43921, sits near the 38.2% retracement level from February at 1.43916. This range could act as an area of interest for short-term positioning.
Market Impact And Policy Updates
In the coming weeks, price action in the pair will likely depend on policy updates and broader market sentiment. With geopolitical risks and trade considerations shaping expectations, traders should monitor how decision-makers approach international coordination. Recent movement suggests technical indicators may play a role in near-term positioning, particularly around key levels that have developed since the start of the year.
