0837 GMT - The Canadian dollar rises to a two-week high against the U.S. dollar as it continues to recover after President Trump agreed to pause a 25% tariff on Canada, ING's Francesco Pesole says in a note. The Canadian dollar could rise further if tariff risks are entirely priced out, he says. There is a residual 1% risk premium embedded into USD/CAD. "That said, we are not sure markets will or should move to a completely optimistic stance on the U.S.-Canada trade spat." There are no clear hints Canada will be spared from another round of potential universal tariffs. USD/CAD could fall to 1.42 in the short-term but risks remain skewed to 1.45 this summer. USD/CAD falls to a low of 1.4289. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
February 05, 2025 03:37 ET (08:37 GMT)
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