USD/CAD

The USD/CAD pair gathers strength to around 1.4220 during the early European trading hours on Wednesday. All eyes will be on the Minutes of the Federal Open Market Committee (FOMC) later in the day for signals on a potential rate hike.

The USD/CAD pair edges higher during the Asian session on Wednesday, stalling the previous day's retracement slide from the vicinity of its highest level since April 2025, touched at the start of this week.

Scotiabank strategists Shaun Osborne and Eric Theoret report that the Canadian Dollar (CAD) is trading flat against the US Dollar, with markets showing little reaction to Quebec’s provincial election.

Royal Bank of Canada’s (RBC) Nathan Janzen notes Canada’s trade balance swung to a $4.2 billion surplus in August, helped by higher energy prices and a rush of exports to the United States (US) ahead of new tariffs.

USD/CAD falls 0.15% on Tuesday and trades around 1.4240 at the time of writing, pulling away slightly from recent highs near 1.4300. The Canadian Dollar (CAD) nevertheless remains vulnerable, weighed down by falling Oil prices as signs of improving global crude supply continue to emerge.

USD/CAD extends its gains for the third consecutive day, trading around 1.4270 during European hours on Tuesday. The pair remains close to freshly reached 18-month highs as the commodity-linked Canadian Dollar (CAD) struggles amid lower oil prices.