CAD: USMCA renewal risk weighs on currency – MUFG

💡 DMK Insight

The Canadian Dollar’s recent underperformance signals potential volatility ahead. Stronger US economic data has put pressure on the CAD, especially as USMCA renegotiation risks come back into focus. Traders should note that the CAD is lagging behind other high-beta currencies, which could indicate a broader risk-off sentiment. If the CAD continues to weaken, it might test key support levels, making it crucial to watch for any signs of a reversal or further decline. The interplay between US economic indicators and Canadian trade negotiations could create sharp moves, particularly for day traders looking to capitalize on volatility. Keep an eye on the upcoming economic reports from both countries, as they could drive further divergence in currency performance.