A Canadian dollar comeback and a long-term USD drag

Original author：investingLive

Original source：https://www.youtube.com/embed/pAA2Ge1lSjk

USD/CAD started the year at 1.37 and has risen to 1.42. Adam Button talks about the Canadian dollar and says he expects we round trip. The USMCA negotiations are top of mind right now but the ‘ask’ side from the US is manageable and I see plenty of signs of confidence on the Canadian side. There will be some token concessions but – after some brinksmanship – there should be some clarity and a relief rally. If anything, the risks are all to the CAD upside as there is a high likelihood of lower tariffs for steel, aluminum and perhaps lumber. On Monday we got the Q2 business outlook survey from the Bank of Canada. In Q1, it showed solid business sentiment despite the headwinds on trade and the Iran war. Most importantly, the outlook for investment spending rose to the highest since 2024 and the second best levels since 2022. investingLive is a real-time market news and analysis platform, built on the legacy of ForexLive. Covering forex, stocks, commodities, and global markets, it delivers fast, reliable updates to support informed trading and investment decisions. With a global team of expert analysts, investingLive combines speed and clarity to keep professionals ahead of market moves, 24/7.