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The start of the trading week has not been particularly favorable for the Canadian dollar. Over the last two trading sessions, USD/CAD has gained more than 0.6% in favor of the U.S. dollar, reflecting a loss of momentum for the CAD in the short term.
Over the last 3 trading sessions, the Canadian dollar has shown signs of strength, reflected in a USD/CAD decline of nearly -0.43%, marking a short-term bearish bias. This pressure has held steady following the release of Canada's inflation data and amid expectations of progress in tariff negotiations, keeping the Canadian currency from losing ground.
It has not been an easy start to the week for the Canadian dollar. Now, renewed weakness in the currency is becoming evident, while USD/CAD has gained more than 0.6% over the last 2 trading sessions, reflecting U.S. dollar strength and a new loss of momentum in the CAD.
The trading week continues to advance and, for now, the Canadian dollar has started to lose the strength it had shown in previous sessions. USD/CAD movements are barely registering a short-term variation near 0.05%, highlighting a loss of momentum.
Since the final days of June, the Canadian dollar has been unable to build relevant strength against the U.S. dollar. Now, average USD/CAD movements remain close to 0.2% in the short term, showing a neutral bias that has become evident again in the behavior of both currencies.
As markets move into the second half of 2026, North American currencies are starting to follow a different path from the one seen earlier in the year. Shifting monetary policy expectations, along with potential progress in Middle East negotiations, could remain key drivers for the USD, CAD, and MXN over the coming months.
Over the last few trading sessions, the weakness of the Canadian dollar against the US dollar has become increasingly evident. This can be seen in short-term USD/CAD price action, with the pair now posting eight consecutive bullish sessions in favor of the US dollar.
Over the last two trading sessions, one of the factors gaining short-term relevance has been the renewed strength of the Canadian dollar. This has been reflected in recent USD/CAD price action, with the pair down around -0.18% over the past two sessions.
