Canadian Dollar Recovery at Risk from US Tariffs, Commerzbank Warns

The Canadian dollar has been strengthening against the US dollar, backed by a robust labour market and better-than-expected GDP, PMI and export figures, according to Michael Pfister at Commerzbank. These indicators point to a genuine recovery in Canada's real economy.

However, Pfister cautioned that the progress remains highly vulnerable. The looming threat of US tariffs on Canadian goods could quickly reverse the positive momentum.

The uncertainty surrounding trade policy adds a layer of fragility to the currency's outlook. While the data is encouraging, the loonie's path higher is far from assured.