On the first day of a brand new year, the Canadian dollar continues to make gains against the US dollar after rising to a 14-month high in the previous session. At the time of writing, USD/CAD is trading around 1.297.

The Canadian dollar has gained around 5% in 2019, the highest gainer among G10 currencies. USD/CAD has also traded bearish over a weakness in the US dollar over an improvement in the risk appetite in global financial markets ever since the US and China announced the signing of the phase one trade deal.

In addition, the Canadian dollar has also been strengthening over a recent bullishness in crude oil prices, as Canada is a leading exporter of oil. Crude oil prices have been trading higher lately ever since OPEC announced deeper supply cuts for 2020, and optimism of fading trade tensions following the signing of the partial trade deal between the US and China.