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  • Market Insights  >  Trade Of The Day

24 March 2025,01:35

Trade Of The Day

CAD dips as Canada Snap Election Uncertainty

24 March 2025, 01:35

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Fundamental Analysis

*The Canadian dollar weakened as Prime Minister Mark Carney called a snap election for April 28, 2025, seeking a stronger mandate to address US tariffs on Canadian goods and Canadian sovereignty concerns. The resulting political uncertainty could weigh on fiscal and monetary policies, prompting investors to adopt a cautious stance and reducing investment inflows into Canada.

Technical Analysis

* Technical Breakdown: USD/CAD is rebounding from the 1.4330 support level, forming an asymmetric triangle pattern, with the move supported by Canada’s election-driven uncertainty. Investors should monitor the 1.4365 resistance level—a breakout could push USD/CAD toward 1.4405. However, failure to sustain momentum may lead to a retracement toward 1.4330 support.

Potential Risks

Upcoming US economic data may introduce volatility and impact USD/CAD’s direction.

Learn more about how to navigate the prop trading landscape by checking out PU Xtrader’s trading blogs.

Monitoring

Keep an eye on potential Trump’s tariffs implementations, and US economic updates for further market direction by following PU Xtrader’s financial news page.

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