Canadian Dollar Shows Muted Reaction to Pause in U.S. Tariffs

Dow Jones
08/19

0804 GMT - The Canadian dollar rises modestly after President Trump said he would pause a 50% tariff on certain goods from Canada for three days while the two countries try to finalize a deal. The Canadian dollar has reacted with some relief but the move is fairly muted as markets participants are presumably uncertain whether a deal will go ahead and what form it would take, Commerzbank's Michael Pfister says in a note. Even if an agreement is reached, the focus will be on how robust it is, he says. "For the Canadian dollar to recover more strongly, the new agreement must not be called into question again after just a few weeks." The U.S. dollar falls 0.2% to 1.3874 Canadian dollars.

 

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