• USD/CAD strengthened on Friday as rate cut by the BoC and the threat of U.S. tariffs on Canada weighed on Canadian dollar.
• The Bank of Canada cut its key rate by 50 basis points to 3.25% on Wednesday to address slower growth, with Governor Tiff Macklem indicating that future cuts would be gradual and no recession is expected.
• Trump has threatened to impose a 25% tariff on all Canadian exports unless Ottawa tightens its border, a move that Governor Macklem said has clouded the economic outlook.
• Canada's economy grew at an annualized rate of just 1% in the third quarter, below the Bank of Canada's forecast.
• At GMT 16:39, the pair was up 0.13% at 1.4182, marking its highest level since April 2020.
• Immediate resistance is located at 1.4263 (23.6%fib), any close above will push the pair towards 1.4287(Higher BB).
• Support is seen at 1.4121(38.2%fib) and break below could take the pair towards 1.4000(Psychological level).
Recommendation: Good to buy around 1.4200, with stop loss of 1.4120 and target price of 1.4300


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