Earlier this morning, the USD/CAD pair eclipsed parity before falling back below and trading lower on Dollar weakness. This is the first time this has occurred since the beginning of the year as risk aversion and a declining US economy are factors causing Loonie weakness.
The Canadian dollar may continue to weaken as the global economy cools, especially here in the US. Canada relies on the US to buy its goods and services so if demand in the US slows, so will the Canadian economy. In addition, the Loonie has a high correlation to oil prices, which if falling due to a global slowdown and lack of demand, will put added pressure on the Canadian currency.