Canada Dollar Stagnates Amid Trade War Escalation
The Canadian dollar is trading in a tight range due to higher crude prices and escalating tensions between the US and Canada. The Trump administration has signaled its preference for separate bilateral arrangements with Canada and Mexico, rather than sticking with the existing trilateral pact.
US Trade Rep Jameson Greer's comments suggest that Washington wants to negotiate new trade deals with each country separately. This comes after President Trump unveiled a fresh 50% tariff on Canadian exports, including autos.
The Canadian economy is expected to see a boost from retail sales ex-autos, which are forecast to jump 1.4% in June. However, rising oil prices and inflation worries have pushed US Treasury yields higher, putting pressure on equities and gold prices.