• USD/CAD traded in tight range as the prospect of further U.S. tariffs dampened market risk appetite.
• President Trump announced plans to impose a 50% tariff on imported copper Tuesday to boost U.S. production of the metal, which is essential for EVs, defense, and power systems. Canada, a key U.S. partner, is a major copper and oil exporter..
• Canada has faced major U.S. tariffs on autos, steel, and aluminum but escaped the broader duties imposed in April. Prime Minister Mark Carney and President Trump have agreed to pursue a trade deal by July 21.
• Trade uncertainty has lingered since April, when Trump capped reciprocal tariffs at 10% for three months to allow for talks, but progress has been limited.
•On the data front, Canada's economic activity grew at its quickest pace in four months in June, while price pressures also picked up, according to Ivey PMI data released on Tuesday.
• The seasonally adjusted Ivey PMI rose to 53.3 in June from 48.9 in May, marking the highest reading since February. A figure above 50 signals expansion in economic activity.
• Immediate resistance is located at 1.3686 (50%fib), any close above will push the pair towards 1.3796(Higher BB).
• Support is seen at 1.3532(38.2%fib) and break below could take the pair towards 1.3334(23.6%fib).
Recommendation: Good to sell around 1.3680, with stop loss of 1.3770 and target price of 1.3600
