USDCAD WILL DELIVER BY FIRE

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The USD/CAD trended lower in a volatile manner this week, declining 0.29% on a weekly basis, reflecting the relative resilience of the Canadian dollar supported by the Bank of Canada's (BoC) policy and economic data. The BoC maintained its interest rate at 2.75%, in line with market expectations. The BoC's concerns about Trump's tariff policies mirror the widespread anxieties among global central banks regarding the impact of trade wars. The central bank is likely to remain on hold in the short term to observe the effects of trade policies. If employment data turns out to be robust, the Canadian dollar may gain further support.

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