Daily Updates

The Canadian dollar (CAD) has shown renewed strength this week, gaining ground against the U.S. dollar (USD) after a few turbulent days in the markets. By Thursday, the loonie — Canada’s nickname for its dollar — was trading around 1.3794 to the greenback. That’s a 0.3% daily gain, reflecting a subtle but telling shift in momentum.
So, what’s behind this bounce in the CAD?

The Canadian dollar has been quietly gathering momentum—and on Friday, it launched to a seven-month high against the US dollar. While it has since pulled back slightly, the Loonie’s upward trajectory remains firmly intact, propelled by a mix of resilient domestic data and global market dynamics.

It’s been a tough ride lately for the U.S. dollar. After a prolonged period of flexing its muscles against global currencies, the greenback is finally starting to cool off—and that’s catching the attention of investors, traders, and everyday Canadians.

Every few years, elections inject a fresh wave of uncertainty into financial markets. The Canadian dollar (CAD) is no exception. Whether it’s a federal election at home or a presidential race south of the border, political outcomes can sway currency values in ways that are sometimes predictable—and sometimes surprising.

The Canadian dollar used to be called the “petro-dollar” for a reason—when oil prices moved, so did the loonie. Well, those were the good old days. Lately, the Canadian dollar has been pulled in different directions by everything from V-shaped recoveries to interest rate announcements and, more recently, broader economic uncertainty. The reality is, the ground under investors’ feet keeps shifting, making the future of the Canadian dollar uncertain and much less predictable.

We might call it whiplash, but is it really whiplash if you’re expecting it?
In the last 24 hours, President Trump has floated the idea of delaying broad-based tariffs on Canada and Mexico until April 4th while also confirming that tariffs on Canada, Mexico, the European Union, and China are set to take effect next Tuesday as planned.

If you’ve been living under a rock, here’s a quick update: U.S. President Donald Trump has signed executive orders imposing tariffs on imports from Canada, Mexico, and China. These tariffs were initially set to take effect on February 4, 2025. However, after negotiations, tariffs on Canadian and Mexican imports were paused for 30 days, delaying their implementation until March 4, 2025.

Since President Trump’s inauguration, tariffs have been the dominant force shaping the USD/CAD exchange rate. Yet, it wasn’t long ago that interest rates and inflation were the primary market movers. Now, much like a parent torn between two wailing children, the USD/CAD currency pair is being pulled back and forth between the demands of inflation and trade tensions, with no easy resolution in sight.

Don’t look now, but after a rough start to the year and hitting a multi-decade low, the Canadian dollar seems to be on an upswing. If things stay on track (and there are no surprises from President Trump), the loonie is set to end the week up by more than 1.5%.

Well, there you have it—Canada is back on Trump’s nice list. And as a reward? We get a 30-day break from tariffs and any talk of annexation (phew). No one is celebrating more than the Canadian dollar.

Last Sunday, just before the tariffs were supposed to kick in, the loonie was in rough shape, sinking to a 20-year low. But then, after a couple of phone calls between our Prime Minister and the U.S. President on Monday—and the announcement that tariffs would be delayed—the Canadian dollar quickly bounced back. By Tuesday, it hit 1.4306, its strongest level since January 22.