USD/CAD Slips Below 1.3750 as 'Sell America' Sentiment Weighs on Dollar

USD/CAD Slips Below 1.3750 as 'Sell America' Sentiment Weighs on Dollar

The USD/CAD pair continues to trade under pressure, falling to around 1.3735 during early Asian trading on Tuesday. The US Dollar remains on the defensive as the broader "Sell America" theme gains traction in global markets.

Investor sentiment has turned negative toward US assets amid growing concerns over the national deficit and recent developments in fiscal policy. Moody’s downgrade of the US credit outlook has added to market caution, further weakening the Dollar. The situation is exacerbated by ongoing economic uncertainty linked to President Trump’s tariff threats and a lack of clear policy direction.

Ray Attrill, Head of FX Strategy at National Australia Bank, commented, “The 'Sell America' theme, quite obviously the dominant one in April last, is again out on show.”

Despite better-than-expected Canadian Retail Sales figures, expectations for a rate cut from the Bank of Canada (BoC) remain intact, which limits further upside for the Canadian Dollar. However, the loonie continues to benefit from relative strength against a weakening Greenback.

Traders are now turning their attention to upcoming US data, including the Conference Board Consumer Confidence index, Durable Goods Orders, and the Dallas Fed Manufacturing Index — all of which could influence short-term USD/CAD direction.

In the near term, the pair is likely to remain sensitive to both US macroeconomic signals and market risk sentiment related to fiscal policy and trade headlines.