USD/CAD parity exceeded 1.40: Canadian dollar diverged negatively

The USD/CAD pair broke above the 1.40 level, retreating from the two-month high of 1.39 reached on November 4, as sharp selling in U.S. equities drove safe-haven demand that supported the dollar. The move reflects the Canadian dollar underperforming its U.S. counterpart, with the loonie diverging negatively as risk sentiment deteriorated. The 1.40 threshold matters as a psychologically significant level that can influence trade flows and inflation dynamics in Canada. Market participants will watch whether the pair holds above 1.40 or pulls back toward the recent 1.39 high, with attention on U.S. equity performance and broader risk appetite as the main drivers of near-term direction.