CAD Weakens Amid Falling Oil Prices, Ongoing Trade War

The Canadian Dollar (CAD) is weakening due to falling oil prices and the ongoing US-Canada trade war. The USD/CAD pair has been trending higher, despite some dip-buyers stepping in to support the Loonie.

The US Personal Consumption Expenditures (PCE) Price Index is expected to provide some impetus for the USD. However, declining US bond yields and diplomatic efforts with Iran have kept USD bulls on the defensive, weighing on the USD/CAD pair.

The price of oil has dropped to a two-week low, which has hurt the CAD. The deepening US-Canada trade war is also undermining the commodity-linked Loonie. Canada recently announced new tariffs on US goods in retaliation for Washington's 50% tariffs on $20 billion worth of Canadian goods.