1056 GMT - The Canadian dollar's losses could remain contained for now following the collapse in U.S.-Canada trade negotiations, MUFG Bank's Derek Halpenny says in a note. There was always a risk of a breakdown in talks to avoid U.S. tariffs on Canadian goods, so there is unlikely to be a large selloff in the Canadian dollar in the near term, he says. Elevated oil prices also remain supportive. However, the medium term implications of the trade spat for the currency depends on whether the situation intensifies and investors price in greater economic harm for Canada, he says. "Canadian dollar downside risks will intensify the longer there is no resolution to this escalating trade war." The U.S. dollar rises 0.5% to 1.3831 Canadian dollars.