Canadian Dollar loses ground amid fresh tariff concerns

• The Canadian Dollar shed another quarter of a percent on Tuesday.
• US President Trump has reiterated his plans to impose tariffs on Canadian goods.
• Worsening US economic outlook weighs down investor sentiment.

The Canadian Dollar (CAD) shed one-quarter of one percent against the US Dollar (USD) on Tuesday, bolstering USD/CAD and keeping the pair bid into the 1.4300 handle. The Loonie lost ground as broad-market investor sentiment takes a hit following worse-than-expected consumer sentiment surveys from the US, and renewed threats of steep tariffs on Canadian goods imported into the US is widening up the low side of the Loonie even further.

According to the US Consumer Board, consumer expectations hit a multi-year low in February, sparking renewed fears of an economic slowdown within the US economy. US President Donald Trump reiterated his threats to impose a package of 25% tariffs on all goods imported into the US from Canada and Mexico. Although most investors broadly believe President Trump will find an eleventh-hour excuse to kick his own tariffs down the road again, the prospect of the US embarking on a global trade war against all of its closest trading partners at the same time is knocking trader confidence lower.

Daily digest market movers: Canadian Dollar eases on tariff concerns

• The Canadian Dollar declined around 0.25% against the Greenback on Tuesday, pushing USD/CAD back into the 1.4300 handle.
• US consumer sentiment survey results showed a downside snap in consumer wage and employment expectations according to the Consumer Board.
• On an indexed basis, US consumers' economic outlook have dipped to a three-year low in the face of tightening job opportunities and low wage growth expectations.
• US President Trump renewed his threats to impose tariffs on Canada, noting that the latest delay was only for '30 days', and are set to come back into effect next week.
• Key US inflation data is also due later this week as investors hope a recent uptick in inflation pressures prove to be the exception and not the new rule.

Canadian Dollar price forecast

The Canadian Dollar has lost ground against the Greenback for a third consecutive session on Tuesday, pushing USD/CAD back above the 50-day Exponential Moving Average (EMA) at 1.4272 and tapping the 1.4300 handle once again. The Loonie is testing back into familiar consolidation territory against the US Dollar, but a notable bullish lean in favor of USD/CAD will likely keep the Loonie under pressure as policy concerns continue to weigh.

USD/CAD daily chart