Trade Tensions Dominate CAD's Near-Term Risks

The Canadian Dollar is expected to be affected by trade tensions between Canada and the US this week.

TD Securities notes that there will be limited domestic economic data, keeping attention on North American trade tensions as Canadian countertariffs take effect on Tuesday.

The US has already signaled higher tariffs on Canadian vehicles from January 1, and TD Securities is watching for any new threats of retaliation over the coming week.