The post Canadian Dollar strengthens to near 1.4050 as US government shutdown continues appeared on BitcoinEthereumNews.com.

The USD/CAD pair loses ground near 1.4040 during the Asian trading hours on Friday. The US Dollar (USD) softens against the Canadian Dollar (CAD) as global trade tensions and signs of weakening in the US economy bolster the case for further rate cuts by the Federal Reserve (Fed). Concerns over trade tensions and the ongoing US government shutdown drag the Greenback lower against the CAD. US President Donald Trump began a trade war with China, raising concerns about long-term impacts on the economy, even as US Treasury Secretary Scott Bessent suggested a longer truce before raising tariffs further.   US federal shutdown will extend into next week as the Senate failed to advance the GOP funding bill for a tenth time. The White House said on Wednesday that it will likely lay off at least 10,000 federal workers during the US government shutdown as Trump steps up pressure on Democrats. Additionally, the prospect of Fed rate cuts in the remainder of the day might contribute to the USD’s downside. Fed Governor Christopher Waller noted that he is on board with another interest rate cut at the Fed’s policy meeting later this month due to the mixed readings in the labor market. The Fed’s newest Governor Stephen Miran reiterated support for more aggressive rate cuts at the October meetings than the one favored by some of his colleagues. Nonetheless, a fall in crude oil prices could undermine the commodity-linked Loonie and cap the downside for the pair. It’s worth noting that Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value. 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…

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Filed under: News - @ October 17, 2025 4:26 am