The Greenback and the Loonie recorded some losses this week as the issue of trade tariff talks between the two countries and Mexico continues.
Monday 5th March: Trade Tariff Talks Affect Loonie Despite Oil Price Surge
Despite the increase in oil prices, the Loonie wasn’t able to shake off the effects of trade wars as Trump seems determined to get his NAFTA demands.
The USD/CAD surged to 1.2927, CAD/JPY meanwhile plunged to a low of 81.37, and EUR/CAD like the USD/CAD pair surged higher to trade at 1.6021.
The sterling started the week in impressive fashion. The main catalyst for GBP’s ascent is the speech by PM Theresa May where she reassured that the UK will set an example for the rest of the deal as the Brexit deal continues to be discussed.
GBP/USD went up and ended the day trading at 1.3878, GBP/JPY meanwhile bounced back from a previous low of 145.09 to reach a session high of 147.12, EUR/GBP meanwhile plunged to a low of .8885, and GBP/NZD surged to a session high of 1.9150.
Tuesday, March 6th: Trade War Fears Continues As CAD Suffers Again
For the second consecutive day, the Loonie took a hit as the NAFTA trade talks continue. This coupled with the dip in oil prices after the API figures were released combined to deal the currency a blow.
USD/CAD reached a session low of 1.2862 before surging to end the session trading at 1.2960 afterward, CAD/JPY plunged to 81.40, while the pair of EUR/CAD surged to a high of 1.6050, and GBP/CAD surged higher and attempted to break past 1.8000.
The yen took advantage of the weakness of the greenback as trade talks continue.
USD/JPY plunged to a low of 105.55, EUR/JPY meanwhile fell to a session low of 130.92 from 132.02, and GBP/JPY also fell to a low of 147.00
Wednesday, March 7th: USD and CAD Record Gains as Tariff Fears Ease
Some positive economic reports helped the greenback to reduce some of the losses incurred as a result of the on-going NAFTA talks. The USD also benefited from reports that Trump might consider exemptions in higher tariffs.
USD/JPY started the session at 105.54 before surging to end the session at 106.21, USD/CHF also bounced back to trade at 0.9437, and EUR/USD plunged to a low of 1.2384.
Just like the greenback, the Loonie also benefitted from the ease in trade tariff. It also benefited from a positive statement by the BOC.
USD/CAD found support at the 1.2915 area, CAD/JPY rebounded from a low of 81.41 to finish the session at 82.22, and GBP/CAD plunged to a session low of 1.7921.
Thursday, March 8th: Comdolls Record Gain As EUR Slips
The lower oil prices didn’t do much to stop the Loonie from recording gains during the Asian trading session today.
The pair of USD/CAD went down by 28 pips or -0.22% to finish the session at 1.2882; CAD/JPY also plunged by 17 pips or -0.20% to trade at 82.30; EUR/CAD pair similarly plunged by 41 pips or -0.26% to end the session trading at 1.5982, and GBP/CAD went down by 23 pips or -0.13% to finish the session at 1.7915.
The European currency recorded some losses during the Asian session. The currency plunged as traders are expecting a disappointing statement from the ECB later today.
Pair of EUR/USD went down by 4 pips or -0.03% to trade at 1.2407; EUR/JPY also went down by 8 pips or -0.06% and ended the session at 131.53; and EUR/GBP plunged by 7 pips or -0.08% to trade at 0.8920.