Analysts at TDS note that US-Canada trade relations hit a pivotal turn with President Trump’s imposition of steel and aluminum tariffs. Key Quotes “In addition, protectionist threats will be taken even more seriously by Canadian markets and businesses, as rhetoric is now being followed up with action. Finally, the tariffs have effectively precluded a NAFTA deal by the July 1 goal.” “As a result, the risk of a full-blown trade war is higher, the timeline of NAFTA talks has lengthened and the risk of Article 2205 being invoked (a precursor to a unilateral exit from NAFTA) is higher though still low.” “Despite worsening tensions on trade, we continue to expect the Bank of Canada (BoC) to proceed with a July rate hike. Although economic data has softened of late, the broader backdrop is still in line with the BoC’s forecast from April.” “CAD’s return profile remains asymmetrically skewed to the downside with the risk of a trade war still being underappreciated. The recent run-up in USDCAD is consistent with our HFFV estimate, suggesting that there is still room for the pair to price in a risk premium. We continue to look higher as the path of least resistance for USDCAD with 1.35 our first mark as a reassessment point.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD could have charted an interim low – Commerzbank FX Street 5 years Analysts at TDS note that US-Canada trade relations hit a pivotal turn with President Trump's imposition of steel and aluminum tariffs. Key Quotes "In addition, protectionist threats will be taken even more seriously by Canadian markets and businesses, as rhetoric is now being followed up with action. Finally, the tariffs have effectively precluded a NAFTA deal by the July 1 goal." "As a result, the risk of a full-blown trade war is higher, the timeline of NAFTA talks has lengthened and the risk of Article 2205 being invoked (a precursor to a unilateral exit from NAFTA) is higher though still… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.