President Trump said he will apply a 25% tariff on Canada starting March 4 as planned. This caused the Canadian dollar, which had stopped falling for a while, to drop again. In addition, oil prices fell sharply, which is negative for the Canadian dollar.
At the same time, investors bought the yen as a safe asset, pushing CAD/JPY to its lowest level since last September. If trade talks between the U.S. and Canada improve, there is a chance the tariffs could be reduced, but the situation remains uncertain.
Last week, Canada’s CPI (inflation data) increased, making interest rate cuts less likely. This may limit further drops in CAD/JPY, but in the short term, prices may continue to fall.
CAD/JPY Expected Range: 104.50 – 102.80
Note: The information above does not guarantee any profit. Please make your own decisions when trading.