Oil Rout and Trade Risks Leave Loonie Vulnerable. Forecast as of 23.09.2026

Falling oil prices are weighing on the loonie, given Canada's status as a major oil-exporting economy. The trade war with the US is slowing Canadian economic growth and making the Bank of Canada more cautious about monetary policy. The BoC has little incentive to follow the Fed's lead, further supporting the USD/CAD. Let's examine these factors and develop a trading plan.Major Takeaways Falling Brent crude prices are pressuring oil-exporting currencies. The trade war with the US is weighing on C