0845 GMT - The Canadian dollar's limited reaction to President Trump imposing new tariffs on Canada appears justified for now, Commerzbank's Volkmar Baur says in a note. "Given the multitude of threats Trump has made in recent months--not all of which have been carried out--the muted reaction seems reasonable for now." However, trade tensions will dominate news surrounding the Canadian dollar in coming weeks and the 50% tariff on a wide range of goods is likely to weigh on Canadian exports, he says. The U.S. dollar trades flat at 1.4065 Canadian dollars, having reached a one-week high of 1.4085 overnight, according to LSEG. The Canadian dollar's modest falls earlier could also reflect lower-than-expected June inflation data, he says. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 21, 2026 04:45 ET (08:45 GMT)

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