The
Canadian greenback
rallied on the “constructive” temper displayed in the course of the assembly between Prime Minister
Mark Carney
and United States President
Donald Trump
on the White Home on Tuesday.
After profitable the
federal election
somewhat greater than every week in the past, Carney travelled to Washington, D.C., to get talks began with Trump on
commerce and tariffs.
The
loonie
rallied 0.3 per cent towards its U.S. counterpart, hitting 72.7 cents U.S., a roughly seven-month excessive, after Carney arrived on the White Home and the query and reply session with the press received underway.
Trump complimented the prime minister on his election win, describing it as “in all probability one of many biggest comebacks within the historical past of politics, perhaps even higher than mine.”
President Donald J. Trump 🤝 Canadian Prime Minister @MarkJCarney. 🇺🇸🇨🇦 pic.twitter.com/OJyKuId8QS
— The White Home (@WhiteHouse) Might 6, 2025
The president added that he and Carney “have lots of issues in frequent, however have some robust, robust factors to go over and that will likely be high quality.”
Carney informed Trump that Canada received’t “ever” be on the market, however “the chance is the partnership and what we will construct collectively.”
Karl Schamotta, chief market strategist at Corpay Foreign money Analysis, attributed the Canadian greenback’s rise to early indicators from the assembly {that a} full-blown disaster over tariffs could be averted.
“Proof of a comparatively heat relationship between the 2 leaders was on show, giving buyers hope {that a} confidence-shattering escalatory tariff cycle could be averted sooner or later,” he mentioned in an e mail.
Royce Mendes, managing director and head of macro technique at
Desjardins Group
, additionally described the general tone of the assembly and press convention as “constructive,” noting that the Canadian greenback and S&P/TSX composite index ralled in the course of the occasion.
Nonetheless, “loonie bulls are treading cautiously,” Schamotta mentioned, on condition that Trump’s flattering phrases, no less than for Carney, run in sharp distinction to his actions on the tariff entrance since he regained workplace on Jan. 20.
A social media put up made by the president shortly earlier than Carney was scheduled to reach on the White Home confirmed Trump hasn’t deserted his complaints concerning Canada.
Posting on the Fact Social platform, the president repeated his grievance that the U.S. was spending US$200 billion a 12 months to subsidize Canada and it’s offering free navy safety. He additionally repeated earlier claims that the U.S. doesn’t want Canada’s automobiles, lumber or power.
Trump leaves door open for CUSMA termination
Carney describes Trump as a ‘transformational president’ in first assembly in D.C.
“The Canadian greenback’s rally could have additional to go,” Schamotta mentioned, including that “it is going to commerce at a reduction to different main currencies for the foreseeable future as buyers hedge commerce dangers.”
The loonie is up practically 5.6 per cent towards the buck since hitting a near-10-year low on Jan. 31, as buyers misplaced confidence within the U.S. greenback over the chaos stirred up by tariffs and the headwinds they may pose for the U.S. economic system.
Nonetheless, the Canadian foreign money is down towards different main denominations together with the Japanese yen, the Swiss franc and the euro, throughout the identical time interval.
• Electronic mail: gmvsuhanic@postmedia.com
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