Canadian Dollar Surges on Trump's Trade Agreement Announcement

The Canadian dollar strengthened against its U.S. counterpart after President Donald Trump's announcement on Tuesday regarding a new trade agreement with Canada.

The Canadian currency traded at around $1.388 for every U.S. dollar, reaching a peak of $1.384 during European trading hours.

The optimism surrounding the Canadian dollar seems to stem from cooling trade tensions and rising oil prices, as Canada remains a significant exporter of oil to the U.S.

Brent crude rose over 1% to approximately $92 a barrel, with some traders attributing this increase to a breakdown in U.S.-Iran peace negotiations.