Risk-Off Tech Selloff Pressures USD/CAD as Safe-Haven Flows Build
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Investors who piled record sums into leveraged semiconductor ETFs last week are now nursing heavy losses as AI investment-return fears resurface. This kind of equity drawdown often triggers a flight to safety that lifts the US dollar against risk-sensitive currencies, including the Canadian dollar.
Because the loonie trades closely with risk appetite and commodity demand, renewed tech-sector stress can widen the gap in the USD/CAD live rate even without fresh Canadian economic data. Traders are watching whether the chip-stock rout spreads into broader equity indices.
If risk aversion deepens, expect USD/CAD to track safe-haven dollar demand more than domestic Canadian fundamentals in the sessions ahead.