Canadian Dollar Steadfast Amid US Tariffs and Escalating Trade Tensions

The Canadian Dollar remained relatively unaffected by new tariffs imposed on Canada by the US. The CAD/USD exchange rate opened at 1.3777 and stayed within a narrow range of 1.3767-1.3791 throughout the day.

The ongoing trade tensions between the US and Iran, as well as the escalation of hostilities, did not have a significant impact on the Canadian Dollar's value. Oil traders, however, took advantage of the situation to buy crude oil, which rose in price from $93.77 to $95.66.

The market is awaiting top-tier US data, including the inflation report due out on Friday, which will influence expectations leading up to the September 16 FOMC decision. Market pricing currently assigns a 60% probability to a rate hike.