RE:Canadian Dollar strength Last year on Dec 31,2022, $1 Cad could purchase $0.74 USD.
Fast forward 1 year later and that same $1 Cad could purchase $0.75 USD or a 1 cent improvement. Keep in mind that from Feb/March and August to December of this year that same $1 Cad could have purchased less than $0.74 USD which signals weakness.
From the moment they began interest rates in March 2022,
$ 1 Cad could have purchased up to $0.80 USD but has weakened relative to the start of the tightening cycle. That is, you could have purchased 5 more cents in US $ than you can if you purchase them today.
This tells me that the markets view the US as a safer place to park their money and is evident by an economy that is doing better than Canada.