🇨🇦 CAD UPDATE: No Free Trade Deal With China — BNY Warns
BNY analysts are flagging a key risk for the Canadian dollar (CAD): there is currently no free trade agreement between Canada and China, limiting Canada’s ability to offset global trade shocks.
🔍 Why this matters
• Canada remains highly exposed to U.S. trade policy shifts
• Without a China FTA, diversification options are limited
• CAD sensitivity to tariffs, commodities, and geopolitics stays elevated
With trade tensions rising globally, currencies tied to exports and cross-border flows are increasingly vulnerable. CAD strength will remain closely linked to U.S. policy decisions, energy prices, and global risk sentiment.
⚠️ Macro fragmentation is real — and FX markets are feeling it.