News and Updates

On Tuesday, the loonie strengthened to 1.3815 per U.S. dollar and briefly traded below 1.38 overnight, marking its strongest intraday move since January 7. Markets were rattled by President Trump’s tough rhetoric on potential tariffs against Europe and by earlier comments suggesting the possible use of force to acquire Greenland, which triggered broad U.S. dollar weakness.
By Wednesday morning, after President Trump ruled out any military intervention during his speech in Davos, Switzerland, volatility eased and the Canadian dollar stabilised around the 1.3830 level.

The Canadian dollar continued its climb this week, touching its strongest level in nearly three months after a combination of stronger domestic data and broad weakness in the U.S. dollar. The loonie traded around 1.3765 per U.S. dollar, which equals roughly 72.65 U.S. cents. During the session, it briefly reached 1.3757, a level not seen since September.

At the moment, the Canadian Dollar (CAD) is in a surprisingly quiet phase as USD/CAD holds near the 1.4000 mark—a major psychological and technical level. The end of the longest U.S. government shutdown in history has introduced both opportunities and challenges for the Canadian dollar. The U.S. dollar has weakened on improved risk appetite, but uncertainty surrounding the wave of delayed U.S. economic data and the upcoming Supreme Court ruling on tariffs has kept the loonie locked in a narrow range. Markets remain hesitant as they wait for clarity from both economic releases and political developments south of the border.

The Canadian dollar is stuck in neutral this week, unable to shake off its slump even as a few fundamentals have turned in its favor. The USD/CAD pair is holding steady around 1.4045, hovering near six-month highs as traders wait for something new to drive momentum. The markets seem to be anticipating more Canadian dollar weakness — and continue to shrug off every piece of positive Canadian economic news. Stronger-than-expected Canadian job growth, firmer oil prices, and dovish talk from the U.S. Federal Reserve should have given the Loonie a lift, but so far, investors aren’t biting.