The Canadian Dollar (CAD) trades on the front foot against the US Dollar (USD) on Tuesday, supported by sustained weakness in the Greenback, even as renewed tariff threats from Washington limit the Loonie’s upside.
Volkmar Baur from Commerzbank analyzes the recent polls in Japan, which show a decline in the ruling Liberal Democratic Party's (LDP) approval ratings ahead of the upcoming elections. The weakening support for Prime Minister Takaichi could impact the Japanese Yen's strength.
The USD/CAD pair builds on the overnight recovery from the 1.3670 area, or a nearly four-week low, and gains some follow-through positive traction for the second straight day on Tuesday.