Expectations of Easing U.S.-Canada Tensions Limit Canadian Dollar's Falls
Dow Jones
Yesterday
1217 GMT - Canada's announcement of $20 billion retaliatory tariffs against the U.S. causes the Canadian dollar to weaken against dollar, although its losses are limited, says ING forex strategist Francesco Pesole. The limited move indicates that markets expect the U.S. and Canada will negotiate further and avoid a full-blown trade war, he says. Canada's announcement came a day after President Trump said the U.S. would raise tariffs on imports from Canada. However, the Canadian dollar could weaken further to reflect the current trade tensions with the U.S., Pesole says. "A move above 1.390 in U.S. dollar/Canadian dollar is very much warranted in the near term." The U.S. dollar rises 0.2% to a one-week high of 1.3874 Canadian dollars, LSEG data show.
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