USD/CAD Back to 1.0850 Amid M&A Activity

Canada’s dollar strengthened the most in almost a year as its U.S. counterpart weakened and traders speculated that the acquisition of coffee-shop chain Tim Hortons Inc. will increase demand for the local currency.

The loonie, as it is referred to because of the image of the waterfowl on the C$1 coin, was the biggest gainer among major currencies against the greenback. The Bloomberg Dollar Spot Index, which tracks the U.S. currency versus 10 leading global peers, fell after rising yesterday to the highest level since Feb. 3.

“We’re in a dynamic where the Canadian dollar should do well from the U.S. recovery and the U.S. dollar has lost its momentum a little bit,” Tom Fitzpatrick, Citigroup Inc.’s chief technical foreign-exchange strategist, said by telephone from New York. “There’s speculation about whether the Burger King purchase will result in the need for Canadian dollars.”


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.