USD/CAD Edges Higher as Carney Signals Trade Talks Amid New US Tariffs

USD/CAD has edged higher as the Canadian dollar softened modestly following reports that Canadian Prime Minister Carney expressed readiness to intensify trade negotiations with Washington after the imposition of new US tariffs. The loonie's weakness extends a broader period of depreciation tied to the ongoing tariff standoff between Canada and the United States. Carney's measured diplomatic tone, emphasizing continued willingness to negotiate rather than pursue immediate retaliatory measures, has provided a degree of stability and may limit further CAD downside in the near term. However, markets remain on alert for any indication that Ottawa could match the new US duties, as it has done with previous American trade measures — a move that could reignite volatility in the pair. The trade tensions inject uncertainty into the Canadian economic outlook, potentially influencing Bank of Canada policy considerations. Traders should monitor upcoming trade policy announcements closely, as escalation or de-escalation will likely dictate USD/CAD direction. Key resistance and support levels will be tested depending on the outcome of intensified negotiations.