US Tariff Delay Brings Modest Relief to Canadian Dollar

Canadian Dollar traders experienced only modest relief as US President postponed new tariffs by three days due to an agreement reportedly close. Michael Pfister at Commerzbank reported that the delay, from March 15th to March 18th, allowed for more time to finalize the deal.

The Canadian Dollar's reaction was muted as market participants questioned whether the deal would go ahead and what form it would take.

For a stronger CAD recovery, Pfister stresses that the new accord must prove robust and not be quickly questioned. The USMCA has faced criticism from the President in recent months, despite being approved during his first term.

Pfister warns that if the agreement is called into question again after just a few weeks, the slow recovery of the Canadian real economy will likely continue.