What you need to know:
1
CAD has been the best performing major currency against the US dollar since the Iran war began (through March 10, 2026).
2
The USD has also strengthened more broadly amidst a risk off backdrop across the various asset classes.
3
USD/CAD weakness during a period of broad-based USD strength is unusual based on what we have observed from our correlation framework.
4
We examine possible causes for this divergence as well as the concept of CAD as a “mini dollar”.
5
We conclude by presenting some war scenarios and the expected impact on CAD going forward.
For the trading range:
USD/CAD
Buyers
1.3400/1.3500
Sellers
1.3800/1.3900
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