The Canadian dollar has declined notably as tensions escalate between Ottawa and Washington, moving closer to a potential trade war. The USD/CAD exchange rate stands around 1.3794 Canadian dollars per U.S. dollar, representing a 0.25% rise in the greenback against the loonie. The conflict stems from the U.S. imposing 50% tariffs on approximately $20 billion worth of Canadian goods, prompting Canada to announce retaliatory tariffs. This trade dispute has shifted FX market focus to tariff-related risks rather than domestic economic indicators. Gold prices reflect this uncertainty, with odds estimated at 70.9% for the precious metal reaching $4,700 in August 2026.
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