TD Securities: The combination of trade uncertainty and rate cut expectations will continue to put pressure on the Canadian dollar in the short term.

Jin10 data reported on August 22nd that, amid uncertain prospects for US-Canada trade and market bets that the Central Bank of Canada will cut interest rates again, the Canadian dollar fell to a three-month low against the US dollar. Reports say that Canadian Prime Minister Carney plans to hold further talks with US President Trump after a “productive call,” but no trade protocol has been finalized yet. A strategist at TD Securities stated in a report: “We expect the Canadian dollar to remain under pressure in the short term, as the trade protocol with the US remains a key risk in the outlook.” Meanwhile, Canada’s inflation data for July, released earlier this week, was below expectations, further raising market expectations for another interest rate cut within the year.