USD/CAD trades in negative territory near 1.4335 in Wednesday’s late American session.
The White House said Trump will delay Canada, Mexico tariffs on autos for one month.
Private employers added just 77,000 jobs in February, weaker than expected, ADP noted.
The USD/CAD pair extends its decline to around 1.4335 during the late American session on Wednesday. The Canadian Dollar (CAD) strengthens against the US Dollar (USD) as investors weigh the prospects of Canada's receiving some relief from US tariffs. Later on Thursday, the US Initial Jobless Claims and Canadian Ivey Purchasing Managers Index will be released.
The White House said on Wednesday that US President Donald Trump is exempting automakers from newly imposed tariffs on Mexico and Canada for one month following the implementation of Donald Trump’s bespoke tariff strategy that imposed a 25% tariff on all goods imported from Canada and Mexico. The Loonie edges higher following these developments and creates a headwind for USD/CAD.
Furthermore, concerns over the US economy weigh on the Greenback. Private sector employment in the US grew by 77K in February, compared to the previous reading of 186K (revised from 183K), according to Automatic Data Processing (ADP) on Wednesday. This figure came in weaker than initial estimates of 140K.
On the other hand, the ongoing decline in crude oil prices on reports that OPEC+ will proceed with a planned oil output increase in April might undermine the commodity-link CAD and cap the downside for the pair. It’s worth noting that Canada is the largest oil exporter to the United States (US), and lower crude oil prices tend to have a negative impact on the CAD value.
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