The euro rate has reached its highest level in the last five months due to the growth of optimism related to the end of the war in Ukraine. The dollar faces challenges in attempts to rise above the five-month minimum against major currencies due to the increasing risks associated with the US economy in light of the unexpected trade policies of President Donald Trump.
The Bank of Canada is expected to announce its monetary policy decision later in the week, and traders anticipate another reduction in interest rates at the quarterly point. The Canadian dollar remained stable after an unstable session on Tuesday, when Trump promised to raise tariffs on steel and aluminum to 50%, before later retracting his words.
"The situation with trade is becoming increasingly problematic, and this is clearly reflected in the forex markets," noted Kyle Rodda.
