• EUR/CAD strengthened on Monday as investors reacted to escalating trade tensions, particularly after recent announcements of increased tariffs.
• Global investors faced renewed uncertainty after President Trump on Friday threatened to double tariffs on imported steel and aluminum to 50%, effective Wednesday.
• On the data front, Canadian manufacturing contracted for a fourth consecutive month in May, with trade uncertainty prompting the fastest job cuts since early in the COVID-19 pandemic, data showed Monday.
• The S&P Global Canada Manufacturing PMI rose to 46.1 in May from 45.3 in April but remained below the 50 threshold for the fourth consecutive month, signaling continued contraction in the sector.
• This week, focus turns to the ECB's rate decision on Thursday and key U.S. jobs data due Friday.
• Immediate resistance is located at 1.5729(38.2%fib), any close above will push the pair towards 1.5764(Higher BB).
• Support is seen at 1.5587(Daily low) and break below could take the pair towards 1.5517(50%fib).
Recommendation: Good to buy around 1.5650 , with stop loss of 1.5560 and target price of 1.5740
