Forex
USD/CAD Rises Amid Escalating Trade Tensions
The US dollar (USD) is rising against the Canadian dollar (CAD), reaching 1.3820 on Monday, as tensions between the two countries escalate over trade talks.
The breakdown in negotiations has led to a 50% tariff imposition by the US on various Canadian exports worth around $20 billion, prompting Canada to retaliate with its own tariffs from September 8.
However, higher oil prices could limit the upside for USD/CAD as Canada is a major oil exporter and elevated crude prices can provide support for the loonie. Oil prices have risen by approximately 20% in July and have maintained most of those gains so far this month.