Canada is thinking of introducing a safeguard action on seven steel products. Canada’s government will look into the matter in depth and identify any threats and safeguards will be applied. EU announced its own safeguards in July. Also, on Tuesday, Canadian dollar was the top performer.
USD/CAD war dropping (during the European session) and followed up with the same trend (during the US session). The financial data to be released today in the US session could apply more downward pressure for the pair. Anyway, we could see it move lower to the 1.3059 support level and break it aiming for the 1.3034 support barrier. On the other side, we could see it move towards the 1.3091 and even breach it.