US Tensions Dominate Canadian Dollar Outlook

Commerzbank's Michael Pfister expects the Bank of Canada to maintain its key interest rate at 2.25%, a move he believes is already fully priced in, with only a small chance of a hike.

The Canadian dollar's outlook is overshadowed by strained US relations and growth risks rather than domestic monetary policy, according to Pfister.

Although the Bank of Canada has been cautious in its announcements regarding monetary policy tightening, officials may hint at tightening early next year.