Canadian dollar hits one-month low as US greenback gets into high gear

The Canadian dollar fell to its lowest level in a month, trading at 1.4015 per US greenback. The strengthening of the American currency following a temporary trade deal between the United States and China is being blamed for the CAD depreciation. 

Karim Francis from Convera Canada ULC. says that positive shifts in trade relations between the world's two largest economies are attracting investment into the US market. This influx is enhancing the American dollar against other currencies, including the Canadian one. The expert predicts that the US Dollar Index (DXY) will continue to rise, putting further pressure on the loonie in the near future.

The situation is aggravated by weak employment data from Canada released a week ago. According to Reuters, the odds are now 55% that the central bank will cut interest rates at its June meeting. The agency reports that such expectations continue to undermine investor confidence in the Canadian dollar.