USDCAD has been the main mover in.....>

DOLLAR-CANADA: USDCAD has been the main mover in the major space during early

Asia-Pacific dealing adding 20 or so pips to trade at highs of 1.2894 following

a report from the Washington Post which noted that US President Trump is set to

announce steel and aluminium import tariffs on Canada, Mexico and the EU on

Thursday and suggested that import taxes could take effect as soon as Friday.

- USDCAD sold off to lows of 1.2836 on Wednesday after the BoC left rates

unchanged as exp., but did remove its 'cautious' reference re: rates, while it

noted that activity in the first quarter appears to have been a little stronger

than projected. 

- Hourly resistance is noted at 1.2900/15 followed by the 50%/61.8% retracements

of the 1.3040-1.2836 move at 1.2938/62. It is worth noting there is some

C$2.77bln of 1.2900 option expiries set to roll off at Thursday's 10AM NY cut.

- Risk events on Thursday include Canadian GDP data & an address from BoC Deputy

Gov. Leduc as part of the BoC's relatively new idea to promote clarity of

message after decisions where the is no press conference.