Start Trading Now Get Started
Advertiser Disclosure
Advertiser Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/CAD Forecast: Falls as Tariff Uncertainty Weighs

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • During the trading session on Monday, we saw the US dollar get hammered against the Canadian dollar, although it’s very important to understand that we are still very much in the same region that we had been in previously.
  • After all, the market continues to look very sideways at this moment, and I do think you have to understand that the tariff situation between the United States and Canada will continue to keep this market somewhat nervous.

USD/CAD Forecast Today 18/03: Tariff Uncertainty Weighs (graph)

Looking forward, I think this is a market that is still trying to find some type of range, but the US dollar is struggling a bit against most currencies, so I think there’s a little bit of a “knock on effect” in this currency pair at the moment. With that, I think you have to understand that the pair has been very bullish for a long time, and until something fundamentally changes between these two countries, it is very difficult to get overly bullish on the Canadian dollar. Granted, the Canadian dollar is oversold by most metrics that she used to measure it, but I also recognize that the market is one that will remain very choppy and based on the latest words coming from either Ottawa or DC.

Expect Volatility

I think you have to expect significant volatility at this point, as the sheriff talks will continue to cause a lot of headaches for traders. However, I also recognize that this is a situation that has seen quite a bit of drama, and that drama more likely than not will eventually fade away. After all, it’s difficult to imagine a situation where the United States and Canada refused to work with each other over the longer term.

Ultimately, Canada sends almost 80% of its exports into the United States, which means that it’s hard to imagine what would happen to the Canadian economy without the United States, so therefore sooner or later cooler heads will almost certainly prevail. The question of course is how much drama will we get between now and then?

Ready to trade our Forex USD/CAD predictions? Here are the best Canadian online brokers to start trading with.

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Most Visited Forex Broker Reviews