USD/CAD steadies above 1.3850 as Canadian Dollar weakens on lower Oil prices
The post USD/CAD steadies above 1.3850 as Canadian Dollar weakens on lower Oil prices appeared on BitcoinEthereumNews.com.
USD/CAD edges higher after registering modest losses in the previous session, trading around 1.3870 during the Asian hours on Tuesday. The pair appreciates as the commodity-linked Canadian Dollar (CAD) struggles amid lower Oil prices, given Canada’s status as the largest crude exporter to the United States (US). West Texas Intermediate (WTI) Oil price inches lower after two days of gains, trading around $59.30 per barrel at the time of writing. Crude oil prices edge lower as rising frictions between the United States (US) and the European Union (EU) cloud the outlook for global Oil demand. However, the upside potential in USD/CAD may be limited as the US Dollar comes under pressure from rising uncertainty over the US–Greenland issue. US President Donald Trump said on Saturday that 10% tariff would be levied on goods from EU members Denmark, Sweden, France, Germany, the Netherlands, and Finland, as well as Britain and Norway, effective February 1, until the US is permitted to purchase Greenland. In response, European Union ambassadors agreed on Sunday to step up efforts to deter the tariffs, while also preparing retaliatory measures if the duties are implemented. The Greenback could strengthen as US labor market data have delayed expectations for additional Federal Reserve (Fed) rate cuts until June. Fed officials have indicated limited urgency to ease policy further without clearer evidence that inflation is sustainably moving toward the 2% target. Reflecting this shift, Morgan Stanley analysts revised their 2026 outlook to one rate cut in June followed by another in September, instead of the previously expected cuts in January and April. Canadian Dollar FAQs The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the…
Filed under: News - @ January 20, 2026 2:22 am