CAD flows: CAD steady after BoC

The BoC sounded cautious in its statement after leaving rates unchanged. While the economy has so far been resilient, the impact of US tariffs remains uncertain. USD/CAD is not much changed, and there has only been a marginal money market reaction, with the probability of a September rate cut slightly reduced. The generally more positive USD tone since the US GDP data keep USD/CAD pressing above 1.38. While the US data was less strong than it looked, the CAD has some downside risks due to its outperformance of yield spreads since the initial tariff announcement back in April.