Canadian dollar outperforms G10 peers as trade war fears ease

The Canadian dollar CADUSD was the top-performing Group of 10 currencies on Tuesday as investors weighed prospects of trade tensions de-escalating between the United States and China. Wall Street rallied and the U.S. dollar jumped against a basket of major currencies after a report that U.S. Treasury Secretary Scott Bessent had said a tariff standoff with China was unsustainable, and that he expects the situation to de-escalate. "The Canadian dollar tends to outperform when trade tensions are declining and underperform when trade tensions are rising," said Adam Button, chief currency analyst at ForexLive. "It says to me the global paradigm…