With markets wary of the weekend's trade talks, USD/CAD has risen to around 1.3860, and the Canadian dollar's weakening trend has continued in the Tokyo market. The Canadian dollar has also weakened against the yen, with the yen showing a weakening trend.
Amid concerns over a breakdown in US-Canada trade talks over the weekend, USD/CAD reached around 1.3860 in New York afternoon trading and has remained near its highs since then. The Canadian dollar's weakening trend has continued in the Tokyo market, with USDCAD holding relatively firm.
Although markets have taken note of the announcement that tariffs on automobiles and auto parts imported from Canada will be raised to 50% from 1 January next year, they are not showing significant concern at this stage and appear to see the possibility of some progress in the negotiations. The Canadian dollar has also weakened against the yen, leaving cross-yen pairs somewhat tilted toward yen weakness.