Is the Canadian Dollar’s Collapse the Canary in the Coal Mine for North American Markets?
Ever notice how some days, currencies seem to play a tug-of-war with headlines, and the Canadian Dollar’s latest wobble feels like it’s losing grip? For six straight sessions now, the CAD has been slipping, with USD/CAD scaling to heights unseen since late May—kind of like a rollercoaster stubbornly refusing to slow down. What’s behind this slide? Well, imagine waking up to a looming threat that your neighbor’s about to slap a hefty 35% tariff on your goods unless a deal materializes by August 1—that’s exactly what US President Donald Trump’s warning feels like to the True North. Add to that the grim news that Canada’s GDP shrank by 0.1% in May, marking another month of contraction, and you’ve got yourself a rather tense economic cocktail. It’s a mix that’s leaving investors wondering: how much steam does the Canadian economy really have left before it runs out of gas? Let’s dive into the twists and turns shaking up the USD/CAD pair and what it might mean for the future. LEARN MORE
- The Canadian Dollar weakens for a sixth consecutive day, with USD/CAD hitting its highest level since late May.
- US President Donald Trump threatens 35% tariffs on Canadian goods not covered under USMCA if no deal is reached by August 1.
- Canadian GDP contracts 0.1% MoM in May, marking the second straight monthly decline.
The Canadian Dollar (CAD) remains on the back foot for a sixth straight day against the US Dollar (USD) on Thursday, sinking to its weakest level since late May. At the time of writing, the USD/CAD pair is trading flat around 1.3834 during early American trading hours, hovering near a fresh two-month high amid sustained Greenback strength and cautious risk sentiment ahead of the August 1 tariff deadline.
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