Canadian Dollar declines as US-Canada trade talks collapse
The USD/CAD pair recovers some lost ground to near 1.3820 during the early European session on Monday. The Canadian Dollar (CAD) weakens against the US Dollar (USD) after US-Canada talks collapse into a trade war.
The Canadian Dollar (CAD) experienced a decline after US-Canada trade talks collapsed, leading to a trade war. The USD/CAD pair regained some lost ground to near 1.3820 during the early European session on Monday. Following the collapse of trade talks, US President imposed 50% tariffs on some Canadian products on Saturday. In response, Canadian Prime Minister Mark Carney announced that the country would retaliate by imposing tariffs of its own starting on September 8, declaring that they were "walking away from a bad deal" and would match Washington's new tariffs dollar for dollar.
Traders will be monitoring Federal Reserve Chair Kevin Warsh's comments regarding his commitment to fighting inflation, as any hawkish remarks could strengthen the US Dollar against the CAD. Meanwhile, tensions in the Middle East could also boost crude oil prices, supporting the commodity-linked CAD. Oil-exporting Canada benefits from higher crude oil prices as they generally have a positive impact on the CAD.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- US Dollar: Momentum fades as yields stay high – MUFG fxstreet.com
