USD/CAD Rangebound as Markets Overlook Canada-US Trade Talks
The Canadian dollar is largely unchanged as markets remain subdued in response to ongoing Middle East tensions and fading expectations for a September Federal Reserve rate hike.
Ahead of the US-Canada trade talks deadline, currency traders have given little attention to the negotiations, which could result in 50% tariffs being imposed on Canadian goods. The current standoff between the US and Iran has kept oil prices elevated, with WTI trading within a narrow band of $83.80-$84.84.
The US dollar is caught between two opposing forces: reduced expectations for a September rate hike and ongoing Middle East tensions. Asian markets were largely unchanged overnight, while European stocks are mixed as the UK FTSE 100 holds steady and the German DAX falls 0.33%.