The Canadian dollar (CAD) showed strength amid the weakening of the US currency (USD), associated with growing concerns about trade conflicts. Investors began to reduce their positions in the US dollar, leading to its weakening against other major currencies.
According to Investing.com, analyst Shaun Osborne from Scotiabank noted that "the Canadian dollar strengthened after traders began selling off the US currency amid growing concerns about trade relations."
At the time of publication, the USD/CAD rate decreased by 0.5%, reaching the level of 1.2500. This indicates an increase in the value of the Canadian currency relative to the US dollar.
The main factors influencing the dynamics of the foreign exchange market are concerns about a possible escalation of trade conflicts between the US and other countries. Investors fear that such conflicts could negatively impact the global economy and lead to a decrease in demand for the US currency.
Moreover, the strengthening of oil prices, a key export commodity for Canada, also supports the Canadian dollar. Rising oil prices contribute to an improvement in the country's trade balance and strengthen its national currency.
Analysts recommend closely monitoring the development of trade relations and the dynamics of commodity prices, as these factors will have a significant impact on the further movement of the Canadian dollar's exchange rate.