Canadian Dollar Holds Steady as Macklem Balances Tariff Risks Against Sticky Inflation

The Canadian dollar remained steady following remarks by Bank of Canada Governor Tiff Macklem, who balanced persistent trade tensions against sticky inflation. Macklem warned that US tariffs could cut fourth-quarter growth to below 1%, while labor force growth may stall near zero. However, with Canadian inflation lingering near 3% and oil near $100 per barrel threatening price stability, the central bank left the door open to tighter policy if second-round pressures persist. Meanwhile, Scotiabank maintained a bullish USD/CAD outlook, noting a break above 1.3990 resistance with targets at 1.4050 and 1.4125.