Yesterday, the current exchange rate was $1.05 U.S. per Canadian dollar and traders expected the exchange rate

Question:

Yesterday, the current was $1.05 U.S. per Canadian dollar and traders expected the to remain unchanged for the next month. Today, with new information, traders now expect the next month to fall to $1 U.S. per Canadian dollar. Explain how the revised expected future influences the demand for Canadian dollars, or the supply of Canadian dollars, or both in the foreign exchange market.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...