USD/CAD Rises as Trade Tensions Outweigh Oil Price Support
The USD/CAD pair rose by 0.30% on Wednesday to around 1.3880, supported by renewed trade tensions between the United States and Canada.
Canadian Finance Minister Francois-Philippe Champagne announced retaliatory tariffs of up to 50% on a range of US products after negotiations failed to produce a trade agreement, while US President Donald Trump threatened another round of tariffs targeting Canadian cars, trucks, auto parts, and steel.
Rising oil prices also provided some support to the Canadian Dollar, with oil rising 0.60% on Wednesday to around $81.20 at the time of writing.
The latest US inflation figures showed that the Personal Consumption Expenditures (PCE) Price Index stood at 3.7% YoY in July, unchanged from the previous month but above the 3.6% expected by markets.