Summary: USD/CAD is rising again as oil price decline adds pressure on the loonie, but there's much more that could define its trajectory. The main reason the Canadian dollar weakened recently was a big drop in global oil prices, but the connection between the US and Canadian economies is about more than just energy. Weak U.S. economic data and diminishing expectations of immediate interest rate hikes by the Federal Reserve have limited further appreciation of the USD/CAD. Interest Rates, Hold SwayMonetary policy differences have been a more consistent influence than oil prices in recent months. The Bank of Canada has adopted a cautious stance on domestic growth, leaving room for potential interest rate adjustments if economic momentum slows.