The Canadian Dollar weakens after negotiations between the US and Canada collapse, lifting the USD/CAD pair to near 1.3820.
The USD/CAD pair climbed to 1.3820 in early European trading on Monday, recovering from earlier losses. The move follows the collapse of trade talks between the US and Canada, pressuring the Canadian Dollar (CAD).
Prior to the breakdown, the pair had traded lower, reflecting optimism around potential progress in negotiations. The failure of talks removes near-term support for the CAD, reversing its recent gains against the US Dollar (USD).
Markets are now assessing the implications for bilateral trade flows and monetary policy divergence between the two nations.