The Canadian dollar $CADUSD has been experiencing a noticeable decline against the US dollar in recent months. The dynamics of the currency market remain influenced by several factors that are essential to understanding the current situation.

According to Statistics Canada, wholesale trade volumes in the country increased by 0.1% in December 2023 compared to November. This growth was primarily driven by a rise in sales of motor vehicles, parts, and accessories. Although modest, the data points to a gradual recovery in one of the critical sectors of the economy. Below, we break down the most notable aspects behind this trend.