CAD/JPY dropped to 101.49 in the Tokyo market but later rose to 102.77. However, after President Trump ordered higher tariffs on Canadian steel and aluminum (from 25% to 50%), CAD/JPY fell to 101.37 due to selling pressure and falling U.S. stocks. Later, reports that Trump might lower the tariff pushed CAD/JPY back up to 102.79. The market remains unstable due to Trump’s changing statements.
Canada’s new Prime Minister Carney is expected to make progress in negotiations with Trump, and the tariff conflict may be ending soon. The Bank of Canada (BOC) is expected to cut interest rates tomorrow due to the economic impact of the trade battle. However, if rates remain unchanged, CAD/JPY could rise sharply. Traders may adjust their positions before the meeting.
CAD/JPY Expected Range: 103.20 – 101.00
Note: The above information does not guarantee profits. Please make your own trading decisions.