FX.co ★ Canadian Dollar Nears 4-Month Highs

The Canadian dollar advanced to surpass $1.42, inching towards its recent four-month peak on April 3rd, bolstered by domestic protective measures amidst a declining U.S. dollar. Canada's rapid enforcement of a 25% counter tariff on vehicles not complying with USMCA standards, starting April 9th, has fortified vital export industries against negative impacts of U.S. tariffs, thereby steadying trade forecasts. In the meantime, the U.S. dollar continues to face pressure due to increasing anxieties about global economic growth and the potential risk of a U.S. recession, driving investors towards safer currencies like the Japanese yen and Swiss franc. This weakness in the dollar is heightened by an ongoing sell-off in U.S. Treasuries, as international investors retract their positions amid escalating trade tensions. These include a substantial 104% tariff on Chinese goods and China's responsive 84% levy on U.S. imports, alongside counteractions from the European Union.