- USD/CAD faces challenges as the US Dollar weakens due to the government shutdown.
- President Trump said that tariffs on China may be lowered, but China has to do things for us, too.
- The commodity-linked CAD may struggle as Oil prices fall on oversupply concerns.
USD/CAD loses ground for the second successful session, trading around 1.4010 during the Asian hours on Monday. The pair depreciates as the US Dollar (USD) struggles due to the ongoing US federal government shutdown. Traders will likely observe the Bank of Canada (BoC) Business Outlook Survey later in the day.
The US government shutdown has stretched into its 19th day with no resolution in sight, as senators failed for the tenth time to break the impasse during Thursday’s votes. It now stands as the third-longest funding lapse in modern US history.
However, the US Dollar (USD) may limit its losses amid easing US-China trade tensions. US President Donald Trump said over the weekend that he wants China to buy soybeans at least in the amount they were buying before. Trump added that he believes China will make a deal on soybeans. “We can lower what China has to pay in tariffs, but China has to do things for us too,” he added.
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet in the coming days to ease tensions ahead of a potential meeting between Presidents Trump and Xi later this month.
The downside of the USD/CAD pair could be restrained as the commodity-linked Canadian Dollar (CAD) could face challenges amid weaker Oil prices. West Texas Intermediate (WTI) Oil price trims its recent gains from the previous session, trading around $57.00 per barrel at the time of writing.
Oil prices struggle amid concerns over rising global supply, following last week’s International Energy Agency (IEA) report expecting OPEC+ members to increase their production, citing its projections for a market surplus.
