FX.co ★ Loonie Remains Strong

The Canadian dollar is trading above 1.38 per USD, hovering near the highest levels seen in seven months and well above the 22-year low of 1.4793 from February, which was before Canada sidestepped broad US tariffs on its exports. The loonie continues to gain strength largely due to the weakening of the US dollar as investors keep a close eye on trade developments and express increasing concerns about the US economic and fiscal outlook. Domestically, attention is turning to Canada's first-quarter GDP figures, set to be released on Friday, which will provide a more comprehensive view of the country's economic performance. Meanwhile, there is a split among traders regarding whether the Bank of Canada will implement another rate cut next week. The latest Consumer Price Index report indicates that headline inflation has decreased, primarily due to a reduction in the carbon tax, yet core inflation, which is closely monitored by the Bank of Canada, has edged higher.