CAD slips, but steadies on tariff news – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) slid briefly in response to yesterday’s tariff headlines, making a new cycle low against the USD near 1.46 before recovering slightly. The CAD is little changed on the session so far today, Scotiabank's Chief FX Strategist Shaun Osborne notes, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Markets await developments

"Every piece of analysis that I have seen in the past few weeks (Scotia’s included) has assumed that 25% tariffs on Canada would be deadly for the CAD, potentially driving spot to the 1.60/1.70 area. The fact that the markets are trading so calmly suggests that investors feel that tariffs won’t actually be applied or, if they are, they will not be applied for very long. CAD 1-week vol continues to climb, reaching 12.7% but that implies markets anticipate only about 100 pips of movement in spot either way next week."

"It’s close to freezing in upstate NY over the coming week and colder in Minnesota which will make it uncomfortable if Ontario turns off electricity exports this weekend, as Premier Ford suggested Ontario could do, as retaliation for tariffs. Canadian industry-level GDP is expected to fall 0.1% in the November month—in line with the flash estimate released with the October data."

"A new high for the USD yesterday just under 1.46 disrupts the USD-negative technical developments I have noted on the daily and weekly charts recently. The USD advance was very brief and spot quickly settled back into its former range. On the technical face of it, the USD’s advance to a new high tilts risks back to a further rise and test of 1.47. Support is 1.4400/10 and 1.4360."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold eyes next breakout on US GDP, PCE inflation data

Gold sticks to recent gains around the $5,000-mark early Friday, biding time before the high-impact US macro events. The focus is now on the US fourth-quarter Gross Domestic Product, core Personal Consumption Expenditures Price Index and the Supreme Court’s ruling on President Donald Trump’s tariffs.

Ethereum: Active addresses halt growth as US selling pressure eases

Ethereum network growth has declined after two months of explosive increase. US selling pressure has eased following an improvement in the Coinbase Premium Index. ETH extends its range-bound move below the $2,107 resistance and above $1,740 .

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.