USD/CAD: Greenback Extends Gains Ahead of Holiday Season as China Announces Tariff Cuts

The US dollar extended gains against the Canadian dollar in today’s trade, together with US stock index futures, on news China would cut tariffs on a range of products in 2020.

Beijing announced it will cut tariffs on a wide range of imports, including frozen pork and tech-parts, demonstrating the country’s willingness to reduce trade barriers as it negotiates a trade deal with the United States.

While the tariff cuts are not directly related to the Phase One trade deal between Beijing and Washington, they still demonstrate China’s stance on freer trade. The listed items accounted for around $390 billion of China’s imports in 2018.

In Canada, economic output edged down 0.1% in October, marking the first decline in the last eight months. Market expectations were set for a 0.1% growth. While 13 of 20 industrial sectors posted increases in economic activity in October, goods-producing industries and the manufacturing sector were down by 0.5% and 1.4%, respectively.

Another important economic report that came from the United States today showed durable goods orders declining by 2.0% in November, well below forecasts of a 0.2% rise. This decline in orders has been dragged down by weaker demand from the defense sector and represents the biggest fall since May.

There are no market reports of note from the US and Canada in the days ahead, as banks and most government agencies will be closed during the upcoming holidays. Nevertheless, thinning liquidity may cause unexpected and choppy price-movements in the markets.

From a technical standpoint, the USD/CAD pair was breaking above a daily falling trendline at the time of writing, but yesterday’s high of 1.3181 could act as a minor resistance for bulls.

As of 2:00 p.m. London time, the Canadian dollar traded at 1.3170 against the US dollar — up 0.20% for the day. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.