FxWirePro: USD/CAD consolidates narrow range as U.S. tariff deadline nears

• USD/CAD gained modestly on Thursday as investors remained cautious after President Trump escalated the trade dispute with Canada over its stance on Palestine.

• A day ahead of the August 1 tariff deadline, U.S. President Donald Trump ramped up trade tensions with Canada, citing the country’s backing of Palestinian statehood as a major obstacle to a deal..

• Trump plans to impose a 35% tariff on all Canadian goods not covered by the USMCA if no deal is reached by the August 1 deadline.

• Meanwhile, Data on Thursday showed Canada’s GDP contracted 0.1% in May, in line with expectations, though a rebound is anticipated in June.

•Separate data showed,  U.S. inflation rose in June as import tariffs drove prices higher, reinforcing expectations that price pressures will intensify in the second half of the year.

• At GMT 15:18 ,the greenback  trading flat at 0.29% at 1.3838 against Canadian dollar.

• Immediate resistance is located at 1.3840(Higher BB), any close above will push the pair towards 1.3869(50%fib).

• Support is seen at 1.3742(38.2%fib) and break below could take the pair towards 1.3680(SMA 20).

Recommendation: Good to buy around 1.3820, with stop loss of 1.3720 and target price of 1.3880