Canada

USD/CAD, DXY Outlook: The U.S. Dollar Index (DXY) is maintaining a bullish setup, while markets remain in a holding pattern amid developing geopolitical tensions, tariff negotiations, and upcoming key economic reports.

U.S. Dollar bulls failed to drive a pullback and USD/CAD remains heavy after the pair reverted into its long-term range.

The longer-term range remains in-effect in USD/CAD, but the big question now is whether sellers can show follow through after a sizable reaction to resistance on Monday.

USD/CAD started off Q1 with a dramatic flair as tariffs were supposed to come into play but then spent the next two months clawing back that move.

Another key date for Trump tariffs comes into play next week after the Q2 open, with April 2nd being called ‘Liberation Day’ for the United States.

The Canadian Dollar remains a focal point in tariff talks, and USD/CAD has a bull pennant formation while CAD/JPY has shown recovery potential and EUR/CAD a pullback following a strong breakout.

USD/CAD has seen price action tighten over the past six weeks, even as the tariff topic has kept volatility flowing through several headlines.

Canada remains at the center of President Trump’s focus and despite a strong sell-off in DXY, USD/CAD has held up well, building a bull pennant over the past couple of months.

USD/CAD was rejected at 1.4500 this week and now that there’s another potential delay in U.S. and Canada tariffs, USD/CAD is primed for larger pullback potential.

GBPUSD, USDCAD Outlook: Following this year's steep market drop against the US Dollar, a reversal may be developing as the Dollar loses momentum. However, key geopolitical risks from Trump policies cloud a clear confirmation.

USD/CAD broke support as the U.S. Dollar broke down this week even after strong inflation prints out of the U.S., suggesting that Trump tariffs are losing their drive for USD-strength.