The U.S. dollar extended its rally versus its Canadian counterpart on Tuesday, hovering near an eight-month high, as President Trump pressured to get better NAFTA deal.
The USDCAD pair resumed it rise for a seventh straight session to 1.2991 after hitting a top of 1.3000 on Monday.
Trump faced immense pressure from global allies to pull back his planned tariffs, prompting him to call for a new NAFTA deal.
There have been negotiations between the U.S., Canada and Mexico over the NAFTA deal as the U.S. looks forward to getting more concessions.
The Canadian dollar slumped to resume its bearish direction that started since hitting a low of 1.2248 on January 31.
Crude oil futures retreated slightly to $62.56 a barrel after locking gains over the previous two sessions, yet the advance could not give a boost to the loonie.
The dollar index, which tracks the green currency’s movements versus a basket of major currencies, rose to 89.98, doing attempts to claw back above the 90 level.
The green currency halted its gains last week on concerns of global trade war after Trump’s announcement of a plans to impose tariffs of 25% on imported steel and 10% on aluminum.
“Trump was expected to finalize the planned tariffs later in the week, although some observers familiar with the process said it could occur next week,” according to Reuters.
Investors will continue to trail any updates about Trump’s planned tariffs, ahead of Friday’s U.S. non-farm payrolls report.
Later in the day, Canada will release Ivey PMI for February that may
signal a widening expansion to 56.3 from 55.2 in January.