The USDCAD is currently trading at about 1.36, its lowest since the beginning of the month. This decline is mainly due to falling oil prices. Global growth concerns have led to a decrease in crude oil demand, overshadowing the effects of production cuts. This has, in turn, lessened the demand and support for the Canadian dollar, commonly known as the loonie.
From a policy perspective, Tiff Macklem, the Governor of the Bank of Canada, has hinted at a possible future interest rate hike. He emphasized that there are no current plans to ease measures, considering the continued high inflation rates above the target. In the United States, recent inflation data revealed ongoing pressure on consumer prices, with a slight increase to 0.1% in November. This comes just before a key monetary policy decision expected on Wednesday.