The USD/CAD pair experiences a decline, trading near 1.3685 in the early Asian session on Monday. The pair reaches its lowest point since December 30, 2025, as the US Dollar experiences widespread declines, while data indicates an increase in Canadian Retail Sales for November. Market participants will monitor the upcoming release of the US November Durable Goods Orders report, scheduled for later on Monday. USD/CAD has dipped to approximately 1.3685 during the early hours of the Asian session on Monday. In November, Canadian retail sales experienced a 1.3% month-over-month increase, surpassing expectations. Trump issued a warning to Canada regarding the imposition of 100% tariffs in relation to a potential trade agreement with China.
Statistics Canada released data on Friday indicating that Retail Sales increased by 1.3% month-over-month in November, in contrast to a revised decline of 0.3% in October (previously reported as -0.2%). In the meantime, the Retail Sales ex Auto figures increased by 1.7% in November compared to a previous decline of -0.6%. Both figures exceeded the market consensus of 1.2%.
It is reported on Saturday that US President Donald Trump has issued a warning regarding the imposition of 100% tariffs on Canadian goods should the country finalize a trade agreement with China. Canada’s Prime Minister Mark Carney stated on Sunday that the country does not plan to seek a free trade agreement with China, noting that his recent arrangement with China only reduced tariffs on certain sectors that had recently faced them.
“There is a persistent risk of tensions between Carney and Trump, along with the upcoming USMCA negotiations this summer,” stated Aaron Hurd. “Given the potential risks ahead, unless we see a significant improvement in Canadian economic data, I believe the Canadian dollar will remain at this level.” “It will move with the broad dollar,” Hurd added.