The trade war is getting worse as Canada adds tariffs on U.S. goods in response to U.S. tariffs. However, Canada is in a weaker position, and its economy may suffer more, making it hard for the Canadian dollar to rise. At the same time, Japan’s plan to raise interest rates is increasing demand for the yen, putting pressure on CAD/JPY to go down.
At the end of last week, U.S. President Trump mentioned a possible tax exemption on April 2, which caused some buying of the Canadian dollar. However, his statements may change again, so strong buying of CAD/JPY is unlikely before April 2.
This Week’s CAD/JPY Expected Range: 105.00 – 102.20
Note: This information does not guarantee profits. Please make your own trading decisions.