October 24 Wrap: USD/CAD -0.85% on Unexpected US Tariff Hikes
📊 Daily Performance
| Pair | Open | Close | Change | High | Low | Range |
|---|---|---|---|---|---|---|
| EUR/USD | 1.0567 | 1.0598 | +0.29% | 1.0605 | 1.0550 | 55 pips |
| USD/CAD | 1.3705 | 1.3590 | -0.85% | 1.3710 | 1.3585 | 125 pips |
| GBP/USD | 1.2278 | 1.2345 | +0.54% | 1.2350 | 1.2260 | 90 pips |
🏆 Winners & Losers
Strongest: GBP +0.54% | Weakest: CAD -0.85%
🔑 Key Drivers
- US Tariff Announcement: President Trump announced an additional 10% tariff on Canadian goods, shocking markets and leading to a sharp decline in CAD. The USD/CAD pair saw a significant drop, closing 0.85% lower than its opening price.
- US CPI Data: Reported at 3.03%, below the expected 3.1%. This softer inflation data contributed to a weaker USD in early trading, but market focus shifted swiftly after the tariff news.
- Michigan Consumer Sentiment: Came in at 53.6, below the expected 55.0, indicating weaker consumer confidence and potential future spending cuts.
📅 Tomorrow’s Calendar
| Time | Country | Event | Expected | Impact |
|---|---|---|---|---|
| 14:00 | USA | FOMC Rate Decision | 25 bps cut | HIGH |
| 14:30 | USA | Fed Chair Powell Press Conference | N/A | HIGH |
| 09:00 | Germany | Ifo Business Climate Index | 94.5 | MEDIUM |
🎯 Overnight Watch
USD/CAD: Support at 1.3550, Resistance at 1.3650
EUR/USD: Support at 1.0550, Resistance at 1.0620
Trade 24/5: Join YLDFX
This analysis highlights the significant impact of geopolitical events on forex markets, particularly how unexpected announcements, like the US tariff increase on Canada, can lead to sharp movements. Traders should monitor these developments closely, as further escalations or resolutions will influence market dynamics. Additionally, the upcoming FOMC meeting is critical and could either confirm the current market sentiment or provide surprises that could lead to further volatility.