News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
  • Top event risk for more than just the Dow and Dollar this week is the Wednesday #FOMC rate decision. What the markets expect sets the tone for how the event impacts price action. My run down of the week and Fed decision: https://www.dailyfx.com/forex/video/daily_news_report/2021/06/12/Dollar-and-SP-500-Breaks-Must-Abide-the-FOMC-Decision-This-Week.html https://t.co/Huvth4f706
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/AkE7bFRWAt
  • $GBPUSD continues to trade in ranges as volatility dwindles. UK data to play second fiddle to FOMC. Get your market update from @JMcQueenFX here: https://t.co/T0Eg4KaENB https://t.co/GMmZa5L0Il
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/wlGgQrcK3X
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/qnQ8Cx0DKv
Canadian Dollar Wilts as US Slaps Tariffs on Softwood Lumber

Canadian Dollar Wilts as US Slaps Tariffs on Softwood Lumber

David Cottle, Analyst

Talking Points:

  • The Canadian Dollar has taken a big hit Tuesday
  • Washington has put tariffs on Canada’s vast softwood export trade with the US
  • The Trump administration has barked harder than it’s bitten on trade. Is that about to change?

Would you like to know more about trading the financial markets? DailyFX’s trading guide should be your first stop.

The Canadian Dollar fell to four-month lows against its big southern cousin in Tuesday’s Asian session, reacting to news that the US would slap tariffs on softwood lumber imports from Canada.

President Donald Trump reportedly announced this decision on Monday evening during a reception with conservative journalists. The Commerce Department later said it would impose a “countervailing duty” of between 3% and 24% on Canadian lumber exporters. Commerce Secretary Wilbur Ross said total duties would amount to about a billion US Dollars annually.

US producers have long argued that Canadian lumber is unfairly subsidized because producers there can source timber from government land. Canada denies that this amounts to subsidy and that producers must sell at market rates. Dispute on the issue goes back decades.

Still, here is yet more evidence of a tougher trade approach from the White House. Lumber is one of Canada’s largest exports to the US, with about 80% of supply heading south. The question now is where else will trade-hawkish instincts strike next.

The Canadian Dollar wilted after this news broke. USD/CAD climbed to 1.33580, form 1.34120.

Battle of the Dollars: The US version is winning.

Canadian Dollar Wilts as US Slaps Tariffs on Softwood Lumber

2.1K

This new spat comes as Canada enters initial exploratory talks with China about a possible free trade deal between the two countries. At present talks are reportedly centered around what potential agreement could look like. A deal may be years away if one is struck at all. It is also all-but impossible that trade with China could ever replace the sort of exchange between Canada and the US.

Still, more tariffs from Washington could inject new urgency into the process, from both sides. Whether the US would welcome closer ties between Beijing and Ottawa is open to question.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES