GBP/CAD Set to Break Higher as Trade War Escalates
The Pound-to-Canadian Dollar exchange rate is set to break higher after trade talks between Ottawa and Washington collapsed on Friday night, leading to tariffs taking effect at midnight. The Canadian Dollar has been impacted by this development, with Prime Minister Mark Carney stating that Canada will match the measures dollar for dollar.
According to a chart created with TradingView, the GBP/CAD rate has been in a three-week range, with every rally stopped at the same place and every decline halted at the same place. The 21-day moving average is currently at 1.88152, which has been declining since August.
The collapse of trade talks reverses a position that looked settled midweek, when President Trump paused the tariffs for three days and declared a deal had been reached. However, Ottawa blamed terms it described as uneconomic and unfair, while US Trade Representative Jamieson Greer said Canada had declined to finalize the agreement on the terms already agreed.