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USD/CAD advances in the US session, trading above the 100-day MA as the potential for further gains grows. There are of course headwinds for the pair which could scupper a move higher in the coming days.

Canada escaped Trump’s tariff announcement yesterday unscathed, as products that are eligible under the USMCA agreement will remain tariff-free. We expect that this exemption will cover over 80% of Canadian trade, and the tariff rate on Canadian exports to the US would only rise by 5.5% under Trump’s proposals.


