On Tuesday, the Canadian dollar continues to trade weak after falling to the lowest level in seven weeks against the US dollar, over a prolonged weakness in crude oil prices compounded by the fears of the coronavirus outbreak. At the time of writing, USD/CAD is trading at around 1.

Commodity dollars like the Canadian dollar have been weakening as a result of the risk-off sentiment in global markets over worries that the coronavirus could turn into a global pandemic and slow down economic growth in China and other countries. Crude oil prices have fallen by as much as 13% over the past week and this has impacted the Canadian dollar as Canada is a key exporter of oil.

Meanwhile, a second confirmed case of coronavirus has been reported in Canada, while around 19 patients remain under observation so far. USD/CAD has also strengthened as the US dollar continues to gain against major currencies over its safe haven appeal, driven by reigning uncertainties and fears in financial markets.