USD/CAD: Canadian Dollar Weakens on Trade Tariff Concerns

USD/CAD has advanced as the Canadian dollar faces significant pressure from escalating trade barrier concerns. The implementation of new tariffs is reshaping Canada's economic outlook, with potential impacts on key export sectors including energy and manufacturing. Market participants are reassessing CAD positions as trade uncertainties cloud the Bank of Canada's policy path and economic growth projections. The loonie's vulnerability has been exacerbated by its high correlation with commodity prices and trade flows, both of which face headwinds from protectionist measures. Technical analysis shows USD/CAD breaking above recent resistance levels, with momentum indicators supporting further upside potential. The trade policy landscape remains the dominant driver for the pair, overshadowing traditional factors like oil prices and interest rate differentials. Traders should closely monitor trade negotiations and policy announcements, as any resolution or escalation could trigger sharp movements in USD/CAD.