The USD/CAD pair holds steady near 1.3955 during the early Asian session on Wednesday. The upside for the Canadian Dollar (CAD) might be limited amid the dovish expectations from the Bank of Canada (BoC).
US equities and bonds had a good Monday, but considering the width of Trump’s announced exemptions from China’s tariffs, the move is well short of exceptional. Markets retain a substantial risk premium attached to US assets, including the dollar.
USD/CAD halts its four-day losing streak, trading around 1.3890 during the Asian hours on Tuesday. The pair edges higher as the US Dollar (USD) attempts to stabilize amid mounting concerns over stagflation.