The new trading week is underway with the US dollar is modestly higher with the USDCAD moving up the most with a gain of 0.57% after talks with Canada on a trade agreement fell apart.
As a review, the U.S.-Canada trade talks broke down late Friday, reversing optimism that the two sides were close to a framework agreement
The U.S. moved ahead with 50% tariffs on roughly $20 billion of Canadian goods. Canada responded with dollar-for-dollar retaliatory tariffs, set to begin September 8. Disagreements over steel, aluminum, autos and lumber helped derail the negotiations.
Both sides blamed the other for introducing unacceptable last-minute demands. No new talks are currently scheduled. The Canadian dollar weakened on the news, pushing USDCAD higher.