• USD/CAD initially gained on Wednesday but gave up most of ground as investors reacted to concerns over a global trade war triggered by Trump's new tariffs and stronger-than-expected U.S. inflation data.
• The Trump administration will announce reciprocal tariffs on countries that impose duties on U.S. imports by Thursday, the White House said. This move is expected to heighten fears of a global trade war and could accelerate U.S. inflation.
• Canadian Prime Minister Justin Trudeau warned in Brussels that U.S. tariffs on Canadian steel and aluminum would lead to job losses in the U.S. and harm its economic growth.
• On the data front, U.S. consumer prices rose more than expected in January, reinforcing the Fed’s stance that it’s not rushing to cut interest rates amid economic uncertainty.
• Immediate resistance is located at 1.4418 (50%fib), any close above will push the pair towards 1.4504(Feb 4th high).
• Support is seen at 1.4269(61.8%fib) and break below could take the pair towards 1.4191(Lower BB).
Recommendation: Good to buy around 1.4280, with stop loss of 1.4200 and target price of 1.4350
