USD/CAD Pushes to Weekly Highs as Falling Oil Weighs on Loonie

The US Dollar (USD) has continued its winning streak against the Canadian Dollar (CAD), pushing the USD/CAD pair to weekly highs at 1.4080 on Wednesday.

The CAD is struggling due to falling Oil prices, which have dropped to three-week lows below $80 per barrel amid hopes of a negotiated breakthrough in Iran.

Crude Oil, Canada's main export, has accelerated its decline since Tuesday, offsetting the impact of the Canadian Merchandise Trade Surplus, which reached a four-year high in June.

In the US, recent macroeconomic figures have contributed to fading hopes of Federal Reserve (Fed) rate hikes, with expectations of a hike in September dropping to 58% from 67% on Tuesday according to the CME Group's FedWatch Tool.