Canadian Dollar Remains Near One-Year Low

2026-07-03 16:49 By Isabela Couto 1 min. read

The Canadian dollar traded near 1.42 per USD in July, remaining close to a one-year low as pressure from lower oil prices outweighed a softer the US dollar following their weak jobs report.

The Canadian currency continued to face headwinds from lower global oil prices, which have reduced Canada's terms-of-trade advantage and reinforced expectations that the BoC will maintain a dovish policy stance if disinflation continues.

Domestic data provided only limited support, pointing to modest manufacturing growth and a labor market that remains soft but is showing signs of stabilizing.

These conditions are expected to keep the BoC on hold.

Meanwhile, uncertainty surrounding negotiations to revise the USMCA continued to weigh on the economic outlook and reduced prospects for future rate hikes.

The US dollar, however, remained under pressure at the turn of the month as weak US jobs data lowered expectations of a near-term Fed rate hike.



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