**BREAKING: Canadian Dollar Plunges as US-Canada Trade Negotiations Collapse**
The Canadian Dollar has become the worst-performing G10 currency following the breakdown of trade talks between the United States and Canada, according to Scotiabank strategists Shaun Osborne and Eric Theoret. The collapse occurred as Ottawa committed to retaliatory tariff measures and announced plans for domestic business support programs, creating fresh uncertainty across Canadian commercial sectors.
The CAD is underperforming against the US Dollar as markets digest the immediate fallout from failed negotiations. The twin announcement of counter-tariffs and government aid packages signals escalating trade tensions between the two nations, which share the world’s largest bilateral trade relationship.
Currency traders and brokers should prepare for continued CAD volatility as businesses reassess cross-border operations and supply chain risks. The weakness against the greenback reflects investor concerns about economic disruption and the effectiveness of Ottawa’s response strategy.
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FXnCO Insight
** Position for extended CAD weakness with protective stops, as trade uncertainty will likely pressure the loonie until concrete resolution signs emerge or government support details materialize.
Source: FXStreet