Canadian Dollar Update, August 24, 2026 – Canadian Dollar sinks

Canadian Dollar sinks

• Canada walks away from US trade ultimatums
• US Treasury Secretary to announce sanctions on Iran
• US opens higher on fresh risk aversion

USDCAD open: 1.3833, overnight range 1.3783-1.3844, close 1.3764, WTI 85.10, Gold 4,648.29

Carney explained his reasoning here.

The door was left open to try again. Carney announced that Canada will match US tariffs dollar for dollar, with the measures taking effect September 8.

WTI oil traded sideways in a $84.71-$86.56 range despite Bessent announcement that he will unveil what he calls “the greatest financial offensive ever marshalled” In response, Iran is threatening to halt all of its oil exports, and with the Strait of Hormuz still shut, following through would push WTI toward $100/b.

The are no top tier economic reports from Canada or the US today. The pending Iran sanction announcement from Bessent, and the lingering stench from his failed bond-buy back plan have sparked fresh risk aversion and put a lid on FX trading activity.

Asian equity markets ended mixed. Hong Kong’s Hang Seng slid 1.89%, while Japan’s Topix added 0.15% and Australia’s ASX 200 advanced 0.49%.

As of 7:10 am, the UK FTSE 100 has added 0.18%, while the German DAX and the French CAC-40 are unchanged. S&P 500 futures are down 0.31% lower, and  the US 10-year yield is 4.716%.

EURUSD drifted in a 1.1660-1.1688 range. The single currency eased in listless dealing as a fresh round of US-driven risk aversion and an empty top-tier data calendar drained enthusiasm from the session. Losses are cushioned by the sour global reaction to Bessent’s attempt to steer Treasury yields.

GBPUSD chopped about in a 1.3622-1.3656 range. The pound took its cues from the same forces driving EURUSD but drew residual support from Friday’s stronger than expected August PMI data, which pointed to improving consumer confidence and firmer economic growth.

USDJPY firmed inside a 158.59-159.28 range. The pair is modestly bid on the back of buoyant oil prices and elevated Treasury yields, but the prospect of a BoJ rate hike and the heightened risk of BoJ intervention are keeping a lid on gains.

AUDUSD hugged a narrow 0.7158-0.7177 range while consolidating Friday’s advance. The lingering odour from Bessent’s failed Treasury yield gambit is weighing on the pair, while renewed Iran-related risk aversion caps the topside.