The USD/CAD is settling down after a Friday’s rebound led by the departure of President Trump from commercial negotiations with Canada, says the FX analyst of ING, Francesco Pesole.
The markets can be underestimating the probability of cutting rates of the Bank of Canada
“On Sunday, the Canadian finance minister, however, announced the withdrawal of the 3% tax to the great technological ones that had led to the US to abandon the commercial conversations and Trump to threaten new tariffs. The two parties will restart negotiations with the aim of reaching an agreement for July 21.”
“The CAD rebound was relatively limited, pointing out some persistent concerns about how fluid the negotiations can go from here – and, crucially, how deep the agreement can be.”
“While a final agreement can offer some short -term support to the Loonie at the crosses, we still are unusable with the long -term perspectives of the currency, since the tariffs continue to have a material impact on Canadian growth, and the markets may be underestimating the probability of cutting feats of the Bank of Canada.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
