Canadian Dollar Strength Driven by Deteriorating USD Sentiment

The Canadian Dollar to US Dollar exchange rate saw significant fluctuations in July, ending the month near 1.4015 after falling 1.36% over the period.

The USD/CAD pair opened July around 1.4208 and reached a high close to 1.4239 before retreating to a low near 1.3992.

Despite this decline, the Canadian Dollar remains 2.1% higher for 2026, having traded between approximately 1.3482 and 1.4248 since the start of the year.

Scotiabank notes that the Canadian Dollar has benefited from the broader deterioration in US Dollar sentiment following the Federal Reserve meeting, although progress through the 1.4000 area has so far proved difficult.