CAD hits strongest level since September – Scotiabank

The Canadian Dollar (CAD) is reaching its highest level since September, buoyed by favorable rate differentials and a weakening trend in the US Dollar (USD). According to Scotiabank, the rise in CAD can be attributed to the recent economic developments in the US, where below-expected economic indicators are pushing the market toward CAD. With increased liquidity in the Canadian Dollar, investors appear to be boosting their risk appetite, leading to stronger demand for CAD. This momentum reinforces expectations for further appreciation of CAD in light of upcoming interest rate policies. However, while the USD's weakness strongly signals positivity for CAD in the short-term, there are underlying risk factors that traders need to navigate carefully.