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The USD/CAD currency pair traded around 1.3665 on Monday, showing relative stability at the start of the week. After last week’s pullback from a monthly high, the pair remains just below the key 1.3700 level, balancing between a softer US Dollar and weaker crude oil prices.
The US Dollar started the week on a lower footing, with the Dollar Index (DXY) at 97.638, down 0.15% for the day. Trade policy uncertainty continues to weigh on the Greenback following announcements of potential global tariffs, adding caution to the markets. Recent US economic data also signaled slower growth, with factory activity declining and labor market conditions showing gradual softening, limiting immediate upside momentum for USD/CAD.
Meanwhile, oil prices retreated from recent highs, reflecting concerns about global demand amid trade tensions. As a major oil exporter, Canada sees its currency directly influenced by energy price movements. The pullback in crude prices partly offsets US Dollar softness, keeping USD/CAD in a relatively narrow trading range.
Overall, the market is in a holding pattern. Investors are watching global economic signals, trade developments, and energy market dynamics for clearer cues on the direction of USD/CAD in the coming days.
