"USDCAD Surge Slows, But Upside Risks Persist"

Since September, the Canadian dollar has been weakening, primarily due to ongoing trade rhetoric from former President Trump. USDCAD recently broke above the 1.40 resistance level, a barrier that had held for over two years. This upward movement is driven by two main factors: the surge in the US dollar index, supported by stronger-than-expected US economic performance, and the Federal Reserve’s more hawkish stance on interest rates, leading to reduced expectations for rate cuts in 2025