Canadian Dollar Falls on US Tariffs, Weaker Inflation Data

The Canadian Dollar weakened against the US Dollar as trade tensions escalated and domestic inflation data disappointed. The White House announced new tariffs on Canadian imports, reviving concerns over a trade war between the two neighbors. At the same time, Canada’s latest inflation report came in below market expectations, reducing the case for aggressive Bank of Canada rate hikes.

Meanwhile, escalating hostilities in the Middle East kept the US Dollar broadly bid as a safe-haven asset. The combination of tariff headwinds and a softer inflation print pushed USD/CAD to fresh intraday highs, with traders eyeing resistance levels ahead of key economic releases later this week.