German bank: US tariff risks persist, Canadian dollar recovery premature

On February 18th, according to the Jinshi data, Michael Pfister, a forex analyst at Deutsche Bank, said that given that the risk of US tariffs is still ongoing, the recent recovery of the Canadian dollar seems premature. The trade negotiations between Canada and the United States may be very difficult, and in the short term, the US dollar still has room to strengthen. Although we still believe there is a possibility of a decline in the USD/CAD, this may take several months. At the same time, tonight’s data may show a slight acceleration in Canadian inflation in January, but mainly due to base effects. These data would need to significantly exceed market expectations to change the position of the Canadian Central Bank.