The Canadian Dollar (CAD) is showing modest resilience against the US Dollar (USD) on Wednesday, with the USD/CAD currency pair trading around 1.3675. This level marks a near five-month low for the exchange rate, reflecting a growing divergence between the Bank of Canada's and the Federal Reserve's monetary policies. As traders head into the holiday period, market movements remain limited, supporting the Loonie's gains.
The current strength of the CAD against the USD highlights the impact of differing interest rate outlooks from the two central banks. With USD trading firmly, the sustained pressure on USD/CAD suggests that traders are increasingly favoring the Loonie in the context of the ongoing monetary policy landscape. Market sentiment indicates that this trend may continue as investors closely monitor upcoming economic data and central bank signals.
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Data Source: FX Killer Analysis Team Updated: 2025-12-24 18:29
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.