Canadian dollar outperforms G10 peers as trade war fears ease

News Snapshot:

The Canadian dollar CADUSD was the top-performing Group of 10 currencies on Tuesday as investors weighed prospects of trade tensions de-escalating between the United States and China. Wall Street rallied and the U.S. dollar jumped against a basket of major currencies after a report that U.S. Treasury Secretary Scott Bessent had said a tariff standoff with China was unsustainable, and that he expects the situation to de-escalate. “The Canadian dollar tends to outperform when trade tensions are declining and underperform when trade tensions are rising,” said Adam Button, chief currency analyst at ForexLive. “It says to me the global paradigm...