The Canadian dollar traded around 1.36 per US dollar after recovering sharply from its July 17th low of 1.374, lifted by a softer US dollar following renewed optimism that US–Japan and US–EU trade agreements would avert an escalation of tariffs. Crude prices also firmed, reinforcing Canada’s oil-export revenues and lending additional support to the loonie. However, that rebound has stalled as markets refocus on the looming August 1st tariff deadline, where stalled US–Canada negotiations and Prime Minister Carney’s insistence on “no bad deal” have raised the specter of punitive levies. At the same time, stronger June retail sales likely underpin domestic growth expectations and lift pressure on the BoC to extend its loosening cycle.