Published on: 2026-08-25
Updated on: 2026-08-25
The Canadian dollar remained weak on Tuesday on fresh trade tensions. Washington announced a plan to isolate Iran's economy by threatening to impose secondary sanctions on the countries that provide assistance.
PM Carney said Canada would impose retaliatory tariffs on US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, along with some other products.
He stressed that support measures are due next week for industries that are hit, adding these measures could last years. Polls show most Canadians oppose making any concessions to Trump.
Despite intense, week-long negotiations to finalise a deal, talks collapsed over the weekend as both sides traded blame for the deadlock and accused each other of unfair trade practices.
Canada's annual inflation rate climbed slightly past expectations to 3% in July, propelled by a surge in petrol costs linked to the Middle East geopolitical friction alongside pricier travel tours.
The BOC is expected to hold interest rates by the end of this year, before tightening the policy again in 2027. Despite soft labour conditions, consumer spending and business investment keep the economy afloat.
EBC Financial Group analyst says that the loonie was in a long-term downward trend channel. The double top pattern signalled a potential reversal from the mid-summer highs, with an initial resistance around 200 SMA.
As of market close on 24 August, among EBC major products, Altria Group shares led gains as the company announced a contract manufacturing arrangement between Philip Morris USA and Philip Morris International.
Micron shares dropped after a report that the Trump Administration has decided to permit Apple to purchase memory chips from Chinese suppliers ChangXin Memory Technologies and Yangtze Memory Technologies.
The Nasdaq 100 ended lower, pulled down by technology stocks, as investors weighed fresh US economic pressure against Iran and braced for a week that includes Nvidia earnings and a closely watched inflation report.
