USD/CAD fades spike to 1.30

The USD/CAD pair trades at 1.2960, having a hit a high of 1.2999 earlier today.
Heightened trade tensions could mean slower Fed rate hikes

Omkar Godbole FXStreet Contributor

The Canadian dollar fell in early Asia as US-Canada trade dispute escalated after G7 meeting.

Top White House officials accused Canadian PM Trudeau of backstabbing the US after President Trump called him "very dishonest and weak". Further, the risk sentiment soured as Trump withdrew support for a G7 communique which called for a fair and balanced trade.

Consequently, the USD/CAD gapped higher to 1.2999 in early Asia, only to fall back to 1.2960.

Looking ahead - The FX desks may offer USD on fears the heightened trade tensions may force the Fed to go slow with the rate hikes.

USD/CAD Technical Levels

Support: 1.2950 (10-day moving average), 1.2920 (Friday's low), 1.2856 (June 6 low).

Resistance: 1.30 (psychological hurdle), 1.3067 (June 5 high), 1.3125 (March high).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Low
1H	Bearish	Neutral	Expanding
4H	Bullish	Neutral	Low
1D	Bearish	Neutral	Expanding
1W	Bearish	Neutral	Low
Updated Jun 11, 02:15 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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