Canadian Dollar falls despite Oil gains as trade tensions take center stage
USD/CAD rises 0.30% on Wednesday, trading around 1.3880 at the time of writing.
The Canadian Dollar declined despite gains in oil prices as trade tensions between the United States and Canada took center stage. The US Dollar strengthened, supported by higher inflation figures in the US, while the Canadian Dollar faced pressure from escalating trade disputes. Oil prices rose by 0.60% to around $81.20, providing some support for the Canadian Dollar, but the ongoing trade tensions weighed on the currency.
The US Personal Consumption Expenditures (PCE) Price Index remained steady at 3.3% YoY, while the headline index rose by 0.2% monthly. Markets will closely monitor Federal Reserve Chair Kevin Warsh's guidance at the upcoming Jackson Hole Symposium to gauge the impact of persistent inflation on the US central bank's policy plans.
On the Canadian side, retaliatory tariffs of up to 50% on US products were announced by Canadian Finance Minister Francois-Philippe Champagne, while the US threatened to impose additional tariffs on Canadian goods. The USD/CAD pair remains bullish around 1.3880, but overbought conditions suggest a potential consolidation or shallow pullback before a further uptrend.
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.
