Canadian Dollar Falls After U.S. Imposes Tariffs On Canada Lumber
25 April 2017 - 1:16PM
RTTF2
The Canadian dollar declined against its major counterparts in
the Asian session on Tuesday, after the U.S. President Donald Trump
slapped tariffs on imported softwood lumber from Canada, worsening
relations between the two nations.
"We're going to be putting a 20% tax on softwood lumber coming
in -- tariff on softwood coming into the United States from
Canada," Trump said at a gathering of conservative journalists at
White House.
U.S. Commerce Secretary Wilbur Ross reiterated Trump's remarks
in a statement afterward, saying his department will impose new
anti-subsidy duties averaging 20 percent on Canadian softwood
lumber imports, as they are unfairly subsidized.
Canadian government condemned the decision and said that it
would vigorously defend the interests of the Canadian softwood
lumber industry, including through litigation.
Meanwhile, Asian markets are trading higher following the global
rally on Monday after encouraging results from the French
presidential election helped ease worries over political
instability in Europe.
The loonie showed mixed performance on Tuesday. While the
currency dropped against the euro and the aussie, it rose against
the yen. Against the greenback, it held steady.
The loonie fell to a 5-1/2-month low of 1.4753 against the euro
and a 4-day low of 80.86 against the yen, from yesterday's closing
quotes of 1.4666 and 81.31, respectively. Continuation of the
loonie's downtrend may see it challenging support around 1.49
against the euro and 78.00 against the yen.
The loonie dropped to nearly a 4-month low of 1.3566 versus the
greenback and nearly a 4-week low of 1.0253 versus the aussie, from
yesterday's closing quotes of 1.3498 and 1.0215, respectively. The
next possible support for the loonie may be found around 1.38
against the greenback and 1.04 against the aussie.
Looking ahead, U.K. public sector finance data for March is set
for release in the European session.
In the New York session, U.S. S&P/Case-Shiller home price
index and Federal Housing Finance Agency's house price index for
February, new home sales for March and consumer confidence for
April are due.
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