Forex
Home›Forex›Major Pairs›USD/CAD holds near 1.3900 as US tariffs deadline nears
USD/CAD holds near 1.3900 as US tariffs deadline nears
The pair trades in a tight range ahead of the US tariffs deadline and the release of FOMC Minutes, with oil price risks tied to the Strait of Hormuz also influencing the Canadian dollar.
The USD/CAD pair is oscillating around the 1.3900 level, failing to extend a modest recovery from its lowest level since June 3 as traders avoid strong directional bets ahead of a US tariffs deadline.
FXStreet reports that the cautious tone reflects last minute efforts between US President Donald Trump and Canadian Prime Minister Mark Carney to reach an agreement aimed at averting 50% US tariffs on $20 billion worth of Canadian products due Aug. 19.
Attention is also on the FOMC Minutes for additional clues on the Fed's future policy path amid inflation risks linked to higher oil prices. West Texas Intermediate crude is trading near a nearly three-week high, supported by geopolitical risk related to the US-Iran standoff over the Strait of Hormuz.
In the meantime, rising long end US rates have helped support the US dollar. FXStreet notes that the 30 year US Treasury yield has moved above 5.3%, its highest level since 2007, even as market messaging suggests long term yields are increasingly shaping financial conditions, while higher oil prices continue to provide a counterweight for the loonie.
Latest closeWTI crude $82.40 ▲1.4%