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USD firms after US-Canada trade talks breakdown lifts USDCAD

USDCAD rose 0.57% to test the 200-day moving average near 1.3846 as markets digested the failed talks and softer Treasury yields.

Reported · Written up by our desk · Major Pairs

The US dollar picked up at the start of the new trading week after US-Canada trade talks broke down late Friday, reversing optimism over progress toward a framework agreement, according to Forexlive. The shift pushed USDCAD higher, with the pair rising 0.57% to move up the most among major currencies.

Forexlive said the USDCAD is testing the 200-day moving average at 1.38457, after reaching a high around 1.3846 so far, and that a move above the level is needed to build confidence for buyers.

The outlet also pointed to a broader drag on longer-term US Treasury yields, saying yields were lower across most of the curve as markets focused on Treasury Secretary Scott Bessent and efforts to address elevated yields. It reported that some accounts suggest Bessent could potentially tap nearly $1 trillion in the Treasury General Account to help fund additional bond buybacks, though officials have not indicated how much or when.

Outside FX, Forexlive said gold continued to surge, up $65.64 to $4,668.30, as the dollar declined and concerns persisted around the Treasury market. It added that crude oil fell $1.34, or 1.55%, to $85.29 as markets awaited more details on US sanctions against Iran.

Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%

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