Forex
Home›Forex›Major Pairs›USD/CAD slips as traders weigh softer US dollar and ta…
USD/CAD slips as traders weigh softer US dollar and tariff risks
The pair was last around 1.4070, down 0.10% on the day, as investors balanced BoC and Fed rate expectations and a new tariff plan from the Trump administration.
FXStreet reports that USD/CAD pulled back in the Asian session on Friday, trading around the 1.4070 area and down 0.10% for the day, as the US dollar weakened.
The article says spot prices remain above the previous day’s swing low and are still on track for modest gains for the first time in three weeks, but bulls appear cautious before committing to aggressive bets.
FXStreet links the dynamic to diverging Bank of Canada and US Federal Reserve expectations, recent soft Canadian consumer inflation that supports the view the BoC will keep rates unchanged through the rest of 2026, and a market view that the Fed could be more likely to raise borrowing costs by year end due to energy related inflation concerns.
It also points to broader risk factors, including the Trump administration’s plan to impose sweeping tariffs of 10% to 12.5% on 60 of the top trading partners covering nearly all US imports, plus ongoing Middle East tensions that may influence oil and the currency pair; traders are also watching flash US PMIs and the upcoming two day FOMC meeting for direction.