Markets are anxious and we just saw a move lower.
The CNBC report that a 20% blanket tariff was “less likely” than a
- tiered system of 3 different rates, and a
- country by country rate
It is reported that chips, pharma and other tariffs would be announced later. Canada and Mexico tariffs are expected to be lifted as a result of fentanyl.
Reports are also being broadcast that the bargaining window is open for countries to make a plea and that deals made, could see reductions in the countries rate (or elimination).
The news saw the USDCAD move lower (higher CAD).
USDCAD: The price moved from about 1.4403 down to a low of 1.4309. That saw the price move below the 100 and 200-hour MA at 1.4321 to 1.4325. Staying below that would be more bearish. More selling would target the 100 day moving average at 1.4273.. That is also within a swing area between 1.42684 and 1.42789.
Canadian Prime Minister Carney also stated that Trade Minister Le Blanc is having regular discussions with Lutnick. He emphasized that Canada will implement retaliatory measures against the U.S. if additional actions are taken against Canada on Wednesday. The government plans to be very deliberate in how it responds, ensuring that any measures taken are carefully considered to defend Canadian interests. Carney also affirmed that Canada will work to ensure its auto sector remains competitive with the United States.
EURUSD: The EURUSD has moved higher and tests the 100 and 200-hour moving averages between 1.07977 and 1.08076. Get and stay above that area would be needed target the highs for the day near 1.0829. Above that the high from yesterday at 1.0849 and a swing area 1.08594 would be targeted.
US stocks are moving higher and trade at session highs:
- Dow industrial average is up 30 points or 0.08% at 42033.99
- S&P index is up 17 points or 0.31% at 5629.07
- NASDAQ index is up 111 points or 0.65% at 17413.63
The NASDAQ index is looking to snap a four day losing streak.
The ceremony will now be at 4 PM – after the US stock market close. I am not sure what to make of that.
This article was written by Greg Michalowski at www.forexlive.com.
