US Tensions Dominate Canadian Dollar Outlook Amid BoC Inaction

Commerzbank's Michael Pfister expects the Bank of Canada to hold its key rate at 2.25%, which is a move he says has already been fully priced in by markets.

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

While officials may hint at tightening early next year, Pfister argues that interest rate hikes are unlikely to be a priority until the situation with the US eases.