The Canadian Dollar (CAD) surged to fresh 11-week highs against the US Dollar (USD) on Wednesday, buoyed by a decisive shift in monetary policy. While the Bank of Canada (BoC) opted to maintain steady interest rates, the Federal Reserve (Fed) implemented its third consecutive rate cut. This divergence in central bank strategies has significantly strengthened the CAD, pushing the USD lower in the currency pair trading.
As a result, the exchange rate for CAD/USD reached new technical levels, reflecting growing investor confidence in the Loonie. The Fed's accommodative stance continues to weigh on the Greenback, leading traders to reassess their positions. Market implications include increased volatility in other currency pairs, particularly as investors turn their attention to the Euro (EUR) and other key currencies that may respond to shifting interest rates in North America.
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Data Source: FX Killer Analysis Team Updated: 2025-12-10 23:39
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.