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Daily Foreign Exchange Update for September 2, 2026

September 2, 2026

Spot Rates:

  • USDCAD spot rate: 1.3850 - 1.3855 (as at 8:00am PST)
  • Asia: 1.3895 to 1.3905
  • Europe: 1.3915 To 1.3920
  • North America: 1.3850 to 1.3940

Technical Support / Resistance:

  • S2 1.3800
  • S1 1.3840
  • R1 1.3940
  • R2 1.3980

Key Economic Data Releases:

  • Bank of Canada Interest Rate held at 2.25%
  • US ADP Employment Change 38k (prev 42k)

Important events we're watching this week:

  • Sept 2, USA, Challenger job cuts, ISM services PMI
  • Sept 3, Canada, Net change in employment
  • Sept 3, USA, Non-farm payrolls

Market Spotlight

The Bank of Canada held its policy rate at 2.25% this morning, exactly as markets expected, but it's the first decision since Canada-U.S. trade talks collapsed and both sides moved to fresh tariffs, so the tone mattered more than usual. In his opening statement, Governor Tiff Macklem struck what's being read as a cautious hold with a modest hawkish tilt: he flagged rising upside risks to inflation from high energy prices and the new tariffs and counter-tariffs, even while describing growth as having picked up after stalling for much of the past year. Core inflation remains close to the Bank's 2% target and the economy is still running in excess supply, which argues against reading this as a signal of an imminent hike, but Macklem was clear the Bank sees itself balancing two live problems at once: tariffs weighing on growth, and elevated oil prices keeping headline inflation, now near 3%, uncomfortably sticky.

The press conference, underway now, is being watched closely for how far Macklem leans into either side of that balancing act. Canada's own retaliatory tariffs, covering roughly $30 billion of U.S. imports at rates averaging about 30%, take effect September 8 and are expected to add further upward pressure on consumer prices even as they weigh on trade. With Canada's economy having expanded at a solid 3.3% annualized pace last quarter, the Bank has some room to stay patient, but market odds of a further hold had already been sitting near 94% coming into today, so the real news is in the nuance of the language rather than the decision itself.

  • Currently, the TSX is up 0.64% while the DJIA is down 0.79%.
  • EURCAD is down 0.31% trading between 1.6054 and 1.6137.
  • GBPCAD is down 0.41% trading between 1.8697 and 1.8829.
  • JPYCAD is up 0.53% trading between 0.00867 and 0.00875.
  • Gold is up 1.12% trading between $4,282 - $4,397USD/oz.
  • Silver is up 1.57% trading between $63.30 - $65.57USD/oz.
  • Oil (WTI crude) is down 0.14% trading between $89.54 and $92.86.