Trump's Tariff Pause Sends CAD Surging Amid Rising Oil Prices

US President Donald Trump's decision to pause the implementation of 50% tariffs against Canada for three days has given the Canadian Dollar (CAD) a boost, causing the USD/CAD exchange rate to decline by 0.62% on Wednesday.

The tariff pause comes after negotiations between Trump and Canadian Prime Minister Mark Carney, which have eased concerns surrounding trade relations between the US and Canada. While the suspension is only temporary, it provides some relief for the Loonie.

Additionally, rising Oil prices are supporting the CAD, as Canada is a major energy supplier to the US. Crude Oil prices reached a nearly three-week high due to tensions between Washington and Tehran over the Strait of Hormuz, reinforcing concerns about global supply.