Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

The Canadian dollar weakened against its U.S. counterpart on Monday after U.S. President Donald Trump, who has threatened to scrap the NAFTA trade pact, lashed out at Canadian Prime Minister Justin Trudeau in their feud over trade.

Trump fired off a volley of tweets venting anger at NATO allies, the European Union and Trudeau himself in the wake of a divisive G7 leaders’ summit over the weekend.

Trump tweeted on Saturday that Trudeau’s remarks at a news conference, where he said Canada would not be pushed around, “were very dishonest and weak.”

Story continues below advertisement

“I think it is all about G7,” said Mark McCormick, North American head of FX Strategy at TD Securities. “You have the lingering uncertainties over NAFTA ... you still have room now for Trump to walk away.”

The loonie has been pressured recently by new U.S. tariffs on steel and aluminum imports as well as slow-moving talks to modernize the North American Free Trade Agreement, known as NAFTA.

Canada sends about 75 per cent of its exports to the United States and its economy would be hit hard if NAFTA were scrapped.

At 4 p.m. EDT (2000 GMT), the Canadian dollar was trading 0.4 per cent lower at $1.2985 per greenback, or 77.01 U.S. cents. The currency traded in a range of $1.2957 to $1.3027.

Losses for the loonie came after data on Friday showed the Canadian economy unexpectedly shed jobs in May. Still, wages rose at their strongest annual pace in nearly six years, which could give the central bank room to raise interest rates as soon as July.

Speculators have added to bearish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of June 5, net short positions rose to 16,039 contracts from 15,690 a week earlier.

The price of oil, one of Canada’s major exports, rose even as comments from the Iraqi oil minister cast doubt as to whether OPEC would decide to boost output at its upcoming meeting.

Story continues below advertisement

U.S. crude oil futures settled 0.6 per cent higher at $65.05 a barrel.

Canadian government bond prices were higher across the yield curve, with the two-year up 3.5 Canadian cents to yield 1.907 per cent and the 10-year rising 13 Canadian cents to yield 2.308 per cent.

The gap between Canada’s 2-year yield and its U.S. equivalent widened by 4.7 basis points to a spread of –61.7 basis points, its widest since May 2017.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies