Late last week, Canada took a significant step to ease trade tensions by lifting many of its retaliatory tariffs on U.S. imports that fall under the USMCA free-trade agreement.
This move aligned Canada’s tariff structure with the U.S. exemptions for goods covered by the pact and is intended to revive stalled trade negotiations.
However, tariffs remain in place on U.S. steel, aluminum, and autos for now. The decision follows previous concessions, including scrapping a planned digital services tax
As a result, Canadian and US officials are to meet to move the ball down the field.
Despite the news, the CAD is weakening (the USDCAD is moving higher), helped by overall dollar buying. Friday the US dollar fell sharply, today, the flow funds is back into dollar buying.
Technically, the low price on Friday and again today stalled within a swing area between 1.3813 and 1.3832. The current price is trading at 1.3847 above that area after the support held today..
This article was written by Greg Michalowski at investinglive.com.