USD / CAD - Canadian dollar gets a reprieve

- Canada-US trade war averted-for now- China hits back at Trump tariffs- US dollar gives back most of yesterday’s gainUSDCAD: open1.4408 overnight range 1.4387-1.4503 close 1.4427, WTI $71.88, Gold, $2813.79The Canadian dollar is back to where it was on Friday after the Canada-US trade war was delayed until March. It is a farce.President Trump was upset over an issue in Canada that he claimed was responsible for massive amounts of the illegal drug pouring into the US. He also believed hordes of illegal immigrants were crossing into America from Canada. To solve that problem, he imposed 25% tariffs on everything imported from Canada.This action created market chaos, sparked a huge equity sell-off, and raised fears that America would lose a staggering number of jobs and have to pay sharply higher prices for goods and services.Trump spoke to Trudeau and “voila”a short term deal was reached.The US dollar gave back almost all of its gains and equity markets rebounded.China’s retaliation to Trump’s 10% tariff is seen as measured and tepid, suggesting Beijing wants to keep the door open to negotiations. Traders liked that response, and global risk sentiment improved.EURUSD traded in a 1.0272-1.0351 range overnight but remained under pressure. The single currency failed to fully recover the losses sustained from the trade war. This underperformance was due to concerns about the EU being targeted by Trump’s tariff threats. Yesterday’s Eurozone flash CPI data slightly exceeded expectations but was overshadowed by tariff woes.GBPUSD fluctuated between 1.2380 and 1.2454 overnight, nearing levels seen before the trade war turmoil. The pair benefited from the UK’s relatively small trade exposure to the US. Additionally, the UK Prime Minister’s efforts to strengthen ties with the EU provided further support.USDJPY rose inside a 154.70-155.52 band, reversing most of its losses that occurred because of the global trade war fears. Investors remain focused on US employment figures and interest rate prospects, particularly in light of Chicago Fed President Austan Goolsbee’s remarks calling for cautious monetary policy.AUDUSD rallied in a 0.6170-0.6234 range as trade tensions eased somewhat. China’s measured approach to US tariffs helped maintain stability, while attention now shifts to Australia’s PMI data and the broader influence of upcoming US economic events.Today’s US data includes JOLTS Job openings and Factory orders.