USD/CAD holds firm on trade tensions and weakening oil prices

USD/CAD remains steady with the greenback maintaining strength against the Canadian dollar amid persistent trade tensions and declining oil prices. The pair is consolidating recent gains as WTI crude weakness undermines the commodity-linked loonie. Trade concerns between major economies continue to support safe-haven dollar demand while pressuring risk-sensitive currencies like CAD. The weakening oil market, traditionally supportive of the Canadian dollar, is failing to provide its usual boost as energy prices retreat from recent highs. Technical analysis shows USD/CAD holding above key support levels, suggesting further upside potential if oil weakness persists. Market participants are monitoring developments in global trade negotiations and energy market dynamics for directional cues. The combination of trade uncertainty and commodity price pressure creates a challenging environment for the Canadian dollar, with USD/CAD likely to maintain its firm tone in the near term.