img CDN
img AUS
img NZ
img US
Call us now: 1.844.363.7297
imgOnline Dealing Login

Market Moves on US Tariff Announcement; Canada Awaits GDP Numbers

Published March 2, 2018
  • US President Donald Trump announced tariffs on aluminum and steel imported into the United States yesterday; Trump’s planned trade protectionist measures would impose 25 percent tariffs on foreign steel, and a further 10 percent tariff on all aluminum imports.
  • US equities and the Canadian dollar fell sharply yesterday on this news, as fears that the Trump administration’s decision could provoke a trade war unsettled markets; Canada accounts for 16 percent of steel imports in the US.
  • Canada’s International Trade Minister Francois-Phillippe Champagne deemed the tariffs as “unacceptable”; Trudeau’s government commented that their team will seek an exception to these tariffs in order to protect Canadian workers from a severe slowdown in production and a possible dumping of steel products in Canada by other nations affected by the ban.
  • USD/CAD reached as high as 1.2895 yesterday, however, moved lower near the 1.2800 handle by the end of the day. Improving oil prices, which ended a three-day losing streak for the commodity, helped provide some respite to the loonie.
  • The new Federal Reserve chair, Jerome Powell, tempered hawkish sentiment in his testimony to the Senate Banking Committee yesterday; Powell noted that he did not see much evidence of strong wage growth in the US and nor did he see any evidence of an overheating US economy.
  • The Canadian dollar faces another trial today with the release of GDP data at 8:30 AM EST. The Bank of Canada will look for sustained growth out of the Canadian economy as a gauge on when to raise interest rates next.