Canadian Dollar Dives as Trump Confirms Tariffs, Gold Soars to Record High
| Action Insight Daily Report 1-31-25 |
Canadian Dollar Dives as Trump Confirms Tariffs, Gold Soars to Record High |
Canadian Dollar spiked lower after US President Donald Trump confirmed his plan to impose 25% tariffs on imports from Canada and Mexico, set to take effect this Saturday on February 1. Trump justified the decision by citing concerns over migration, drug trafficking, and economic imbalances. However, uncertainty remains regarding whether oil imports will be affected. While the move was not entirely unexpected, the confirmation added pressure to the Loonie as markets assessed the impact on trade, inflation and growth. In contrast, Trump’s stance on China remains less definitive. While he also mentioned potential tariffs on China due to ongoing fentanyl concerns, he stopped short of detailing any immediate action. This leaves the possibility of further trade disruptions on the horizon, though no concrete measures have been announced yet. Despite the tariff headlines, Loonie remains middle-of-the-pack in weekly performance. Aussie and Kiwi continue to struggle, along with Euro. Yen leads the market, additionally supported by stronger Tokyo inflation data, followed by the Dollar. British Pound has climbed higher, benefiting from Euro weakness, while Swiss Franc is trading mix.... |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.4390; (P) 1.4493; (R1) 1.4593; More... USD/CAD's break of 1.4516 resistance indicates resumption of larger rally. Intraday bias is back on the upside for 1.4667/89 key resistance zone. Strong resistance might be seen there to limit upside on first attempt. But break of 1.4260 support is needed to confirm short term topping. Otherwise, outlook will stay bullish in case of retreat. Decisive break of 1.4689 will confirm long term up trend resumption. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Tokyo CPI Y/Y Jan | 3.40% | 3.00% | | 23:30 | JPY | Tokyo CPI Core Y/Y Jan | 2.50% | 2.50% | 2.40% | | 23:30 | JPY | Tokyo CPI Core-Core Y/Y Jan | 1.90% | 1.80% | | 23:30 | JPY | Unemployment Rate Dec | 2.40% | 2.50% | 2.50% | | 23:50 | JPY | Industrial Production M/M Dec P | 0.30% | 0.30% | -2.20% | | 23:50 | JPY | Retail Trade Y/Y Dec | 3.70% | 2.90% | 2.80% | | 00:30 | AUD | PPI Q/Q Q4 | 0.80% | 0.90% | 1.00% | | 00:30 | AUD | PPI Y/Y Q4 | 3.70% | 3.90% | | 05:00 | JPY | Housing Starts Y/Y Dec | -2.50% | -3.40% | -1.80% | | 07:00 | EUR | Germany Retail Sales M/M Dec | -1.60% | -0.20% | -0.60% | 0.00% | | 07:30 | CHF | Real Retail Sales Y/Y Dec | 2.60% | 0.60% | 0.80% | 1.40% | | 08:55 | EUR | Germany Unemployment Change Dec | 11K | 14K | 10K | | 08:55 | EUR | Germany Unemployment Rate Dec | 6.20% | 6.20% | 6.10% | | 13:00 | EUR | Germany CPI M/M Jan P | 0.10% | 0.50% | | 13:00 | EUR | Germany CPI Y/Y Jan P | 2.60% | 2.60% | | 13:30 | CAD | GDP M/M Nov | -0.10% | 0.30% | | 13:30 | USD | Personal Income M/M Dec | 0.40% | 0.30% | | 13:30 | USD | Personal Spending M/M Dec | 0.50% | 0.40% | | 13:30 | USD | PCE Price Index M/M Dec | 0.30% | 0.10% | | 13:30 | USD | PCE Price Index Y/Y Dec | 2.60% | 2.40% | | 13:30 | USD | Core PCE Price Index M/M Dec | 0.20% | 0.10% | | 13:30 | USD | Core PCE Price Index Y/Y Dec | 2.80% | 2.80% | | 13:30 | USD | Employment Cost Index Q4 | 1.00% | 0.80% | | 14:45 | USD | Chicago PMI Jan | 39.9 | 36.9 |
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