Canadian Dollar: Trade tensions and US CPI in focus – TD Securities
TD Securities notes that a data-light week in Canada will keep attention on CAN-US trade tensions as Canadian countertariffs take effect. The US has already signalled higher tariffs on Canadian vehicles from January 1.
TD Securities highlights that the Canadian Dollar will be influenced by trade tensions between Canada and the US, particularly as Canadian countertariffs commence on Tuesday. The focus will remain on any new threats of retaliation from the US regarding higher tariffs on Canadian vehicles set to take effect on January 1. Apart from the data-light week in Canada, key drivers for risk sentiment include the US CPI on Friday and the ECB meeting on Thursday.
These events will provide insights into potential changes in trade and rate expectations, which will be reflected in the Canadian Dollar's value. US Dollar (USD) is currently experiencing headwinds due to concerns over US debt and uncertainty about the Federal Reserve's policy outlook, which may impact the currency pair's performance ahead of the US CPI data release on Friday.
Gold shows resilience around the $4,400 level, but traders may wait for further US inflation figures before making significant moves. In the crypto market, Bittensor is gaining momentum with a 25% gain and an increasing level of social chatter, bolstered by a similar meme coin launch on Solana and the release of ChatGPT-6 Astra.
Meanwhile, the US diesel crack spread has surged above $100 per barrel for the first time, indicating a significant change in market sentiment.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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