Canadian Dollar Marking Time as Markets Await Fed Chair Warsh's Speech

The Canadian dollar traded flat overnight as markets awaited Fed Chair Kevin Warsh's speech today. The US and Canada have escalated trade tensions, which could impact the Canadian economy. The Bank of Canada is expecting a modest gain in June GDP, with a forecasted 0.2% month-over-month increase, following May's 0.3% rise.

The US Michigan Consumer Confidence and Chicago PMI data are due today, but will likely take a backseat to Warsh's speech. Two Fed officials have argued that interest rates need to remain restrictive, while Treasury officials emphasize that bond yields should fall as inflation subsides. Markets are hoping Warsh will provide some clarity on the Fed's stance.

The G-20 Finance Ministers meeting gets underway in Asheville, North Carolina, on Saturday, with Treasury Secretary Bessent at the helm. He has already faced criticism for his attempt to manipulate long-term bond yields and his tariff strategy toward Iran.