Forex
USD/CAD Rises as Trade Tensions Weigh on Loonie
The USD/CAD pair is trading slightly higher near 1.3863 as ongoing trade tensions between the US and Canada put pressure on the Canadian Dollar.
According to TD Securities, the latest escalation in trade tensions reinforces the CAD's role as a carry funding currency, leaving them cautious on the Loonie.
Analysts at National Bank of Canada expect the BoC to hold its overnight target unchanged at 2.25% and maintain its balance sheet policy, which would mark the seventh consecutive hold.