The Canadian Dollar (CAD) remained stable against the US Dollar (USD) over the weekend. Mark Carney’s recent win in the Liberal leadership election could impact Canada and market dynamics as he prepares for a potential election following the handover from Trudeau.
Current tariffs on steel and aluminium, set to be formalised soon, may support CAD in the short term. With 25% tariffs delayed until April, there is an opportunity for the CAD to gain, despite prevailing USD advantages ahead of the Bank of Canada’s upcoming rate decision.
Usd Resistance And Support Levels
The USD is facing some resistance between 1.4475 and 1.4525, while support levels are identified at 1.4250 and 1.4150. Technical indicators show a mixed sentiment, though a weaker USD may provide a baseline for CAD stability in the near future.
What we see at the moment is a Canadian Dollar holding steady against the US Dollar, with market participants weighing the impact of Mark Carney’s recent rise within the Liberal Party. As he positions himself for a potential election, his transition into leadership could introduce new economic policies that shift investor sentiment. This type of political shift tends to alter expectations around fiscal and monetary policy, and while it is too soon to call, markets will be watching closely.
At the same time, tariffs on steel and aluminium, expected to be confirmed shortly, are worth keeping an eye on. With the 25% steel tariffs now officially delayed until April, CAD may find some breathing room. Historically, such trade measures have had mixed effects—while they can prop up domestic industries, reactionary moves from other countries have the potential to dampen gains. Still, in the short term, this should serve as a favourable factor for CAD strength, particularly as rate decisions draw near.
Technical setups show resistance for the USD between 1.4475 and 1.4525, suggesting that any upward movement may struggle past those levels. On the lower end, support appears to be forming around 1.4250 and 1.4150—key areas to monitor for any retracement. Present indicators offer a mixed picture, hinting that a weaker US Dollar may provide a base for CAD, at least for now.
Market Considerations And Policy Announcements
In the coming weeks, derivative traders ought to be mindful of how policy announcements take shape, as well as any economic updates from both Canada and the US. With a looming rate decision from the Bank of Canada, any shift in guidance could quickly sway momentum either way. Keeping an eye on external risks, such as global trade flows and market-wide risk appetite, remains just as important.
