USD/CAD Slides Toward 2025 Lows at 1.3565 After Failing to Hold Above 1.3600

US Dollar Under Pressure as Oil Prices Steady

The USD/CAD pair slipped to eight-month lows around 1.3565 during early Monday trading, unable to break back above the 1.3600 resistance level. The weakness in the US Dollar (USD) reflects broader risk sentiment shifts and mild safe-haven unwinding, as investors await clarity from the G7 Summit.

The Canadian Dollar (CAD), often correlated with crude prices, is receiving support from stabilized Oil markets after Friday’s volatile moves. West Texas Intermediate (WTI) oil, which had surged past $75.00 per barrel, saw a 3% correction early Monday, settling near $71.00.

Commodity-Linked CAD Gains Edge

Despite the pullback in WTI prices, the broader uptrend in commodity demand and supply concerns has helped CAD maintain momentum. Canada's oil exports remain a central factor in CAD valuation, especially with WTI prices still up 12% from late May.

Investors also remain cautiously optimistic that upcoming talks between U.S. President Donald Trump and Canadian Prime Minister Mark Carney at the G7 Summit may bring about progress on tariff negotiations. Hopes of a de-escalation in cross-border trade tensions have supported CAD sentiment in recent sessions.

Related Links (Internal for Tredu.com)

• WTI Oil Price Forecast: Geopolitical Tensions and Supply Disruptions
• G7 Summit 2025: What to Expect From Trump-Carney Talks
• USD/CAD Technical Analysis – Daily Outlook

Technical Outlook

The failure to reclaim 1.3600 leaves USD/CAD vulnerable to a continued downtrend, with support seen at 1.3550 and 1.3520. Resistance remains near the psychological 1.3600 mark, followed by 1.3630.

The near-term bias stays bearish unless the US Dollar finds stronger footing from macro data or Fed comments in the lead-up to the FOMC announcement this week.