USD/CAD Downtrend Continues Amid Eased Tariff Tensions
The US dollar to Canadian dollar exchange rate has been in a downtrend, with bearish momentum from multiple indicators. The USD/CAD pair is currently trading at C$1.3815, down 0.58% for the day.
The recent agreement between the United States and Canada to delay the planned 50% U.S. tariff on specified Canadian goods has temporarily eased trade-related pressures. However, subdued core inflation in Canada has reduced the likelihood of an imminent rate change by the Bank of Canada at its September 2 meeting.
This outcome signals limited policy support for the Canadian dollar, contributing to a neutral to cautious stance toward the currency. Technical indicators reveal USD/CAD trading below the MA-20 (C$1.3874), MA-50 (C$1.3876), and MA-200 (C$1.3835) on the hourly chart.
The baseline expectation is for the pair to continue consolidating within a narrow corridor between C$1.3746 and C$1.3884, with a very high probability of further downside movement.