The Canadian dollar traded slightly higher on September 8, 2026, rising about 0.2% to C$1.3788 per U.S. dollar, or 72.53 U.S. cents, after moving within a narrow range of 1.3776 to 1.3819. The USD/CAD exchange rate was around 1.3802 at 9:37 a.m. ET, marking a 0.09% decline for the day. Oil prices played a key role in the currency’s movement, with U.S. crude futures reaching multi-month highs near $92.73 a barrel, driven by geopolitical tensions—specifically, attacks on Saudi energy infrastructure and heightened concerns over maritime security in the Strait of Hormuz. These factors contributed to a broader oil market rally, which helped offset weaker Canadian economic data and trade-related risks.
Canadian employment data for August showed a decline of 41,700 jobs, contrasting sharply with U.S. payrolls, which grew by 162,000. The divergence in labor market trends initially pushed the USD/CAD rate higher, as investors reassessed the relative monetary policy outlook between the Federal Reserve and the Bank of Canada. However, the oil price surge provided a counterbalance, reinforcing the Canadian dollar’s resilience.
Canada also escalated a trade dispute with the United States by implementing retaliatory tariffs on C$20 billion worth of U.S. goods, following stalled bilateral negotiations. The move underscored ongoing tensions in trade relations, adding another layer of uncertainty that weighed on the currency’s performance.
Looking ahead, markets will closely monitor U.S. inflation data releases later in the week, as expectations for the Federal Reserve’s September policy decision remain a focal point. The data could provide further clues about the Fed’s stance on interest rates, influencing the USD/CAD exchange rate in the coming days.
