Live Updates > Live Update Details
2025-08-02 18:12:03
[US-Canada trade negotiations have reached an impasse, is the Canadian dollar facing a life-or-death test?] ⑴ The Bank of Canada held its overnight interest rate steady at 2.75% at its recent meeting. ⑵ The central bank's statement primarily focused on the potential impact of US tariffs on the Canadian economy. ⑶ Although the Canadian economy has shown some resilience, the central bank remains cautious on monetary policy. ⑷ Market expectations currently suggest the Bank of Canada will maintain interest rates until the end of the year, which may provide support for the Canadian dollar. ⑸ US-Canada trade negotiations are a key factor influencing the Canadian dollar, and the current outlook for the negotiations is not optimistic. ⑹ Trump's tariff policy and Canada's stance on Palestinian statehood have complicated the negotiations. ⑺ If the negotiations reach an impasse or tensions escalate, the Canadian dollar may face downward pressure. ⑻ In addition, rising oil prices may provide some support for Canada, a major oil producer. ⑼ Canada is about to release July employment data. If the labor market tightens, it may further support the Canadian dollar; otherwise, it will increase pressure on the central bank to ease monetary policy.
