USD/CAD faces pressure as Trump cannabis order impacts CAD sectors

USD/CAD is trading with a bearish bias near 1.4350 as markets anticipate President Trump's executive order to fast-track cannabis reclassification, potentially benefiting Canadian cannabis companies listed on US exchanges. The move would formally recognize cannabis's medical value under federal law for the first time, marking a significant policy shift that could strengthen the Canadian dollar through increased cross-border cannabis sector investment flows. Canadian cannabis stocks have rallied in pre-market trading, with major producers seeing gains of 5-8%. The development adds to existing CAD support from stable oil prices near $71/barrel. Technical indicators show USD/CAD facing immediate resistance at 1.4380 (50-day moving average), with support established at 1.4320. A break below support could accelerate the pair's decline toward 1.4280, while any disappointment in the executive order details might see the pair recover toward 1.4400.