Loonie Slumps Amid Trade Tensions and Hawkish Fed Outlook

The Canadian dollar has declined against its U.S. counterpart due to ongoing trade tensions and expectations that the Federal Reserve will keep interest rates higher for longer.

The loonie traded at an exchange rate of [exchange rate] per U.S. dollar as of [time], down [percentage] from the previous session, pressured by the uncertainty surrounding global trade and commodity prices.

The Canadian economy relies heavily on commodities, and a slowdown in global trade can dampen demand for oil and other resources, directly affecting the loonie. Oil prices have been volatile due to supply concerns and demand outlook, with West Texas Intermediate (WTI) crude trading around [price] as of [date].

The Federal Reserve's stance on monetary policy continues to influence the USD/CAD pair, with a [percentage] probability of a rate hike at the next FOMC meeting in [month], according to the CME FedWatch Tool. This expectation supports the greenback, putting additional pressure on the loonie.