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TradingKey - Although the Iran-Israel conflict has subsided, a re-escalation could drive oil prices higher in the short term. As a major resource-exporting nation, the Canadian dollar (CAD) is closely tied to oil prices—higher oil prices typically strengthen the CAD.

On 12 March 2025, the Bank of Canada (BoC) will announce its interest rate decision for March. The market widely anticipates a 25-basis-point rate cut, bringing the policy rate down to 2.75%. We concur with this consensus forecast.

Given the uncertainty surrounding Trump-era policies, we evaluate two scenarios: 1) Tariffs avoided or delayed; 2) Broad-based tariffs implemented.

We categorize the additional US tariffs into three potential scenarios: 1) Broad-based tariffs; 2) Limited-scope tariffs; and 3) Tariffs avoided or delayed. The table below summarizes the expected impacts on the financial markets of Canada, Mexico, China, the US and cryptocurrencies under each...

The USD/CAD pair remains on the defensive around 1.4300 during the early Asian session on Tuesday, pressured by the weakening of the US Dollar (USD).

USD/CAD consolidates in a range near a one-week low amid mixed fundamental cues.



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