Canadian dollar holds as trade war continues

Canadian dollar steadied against its US counterpart as investors closely watched developments on the US-China trade war.

US President Donald Trump has announced that his administration will impose 10 percent tariffs on imports of Chinese goods worth $300 billion as of Sept. 1.

He said that it will be in response to the lack of progress in trade negotiations with China, but accused Beijing of procrastination and wasting time until the end of the US presidential elections in 2020.

He pointed out that the new tariffs have nothing to do with the already imposed tariff of 25% on imports of Chinese goods worth 250 billion dollars.

The markets absorbed the US Federal Reserve's decision earlier this week, which cut interest rates by a quarter of a point to 2.25% from 2.50%, the first cut since 2008.

In terms of trade, by 15:55 GMT, CAD/USD stabilized at 0.7572, with a high of 0.7575 and a low of 0.7534.