08:50 AM EST, 02/04/2025 (MT Newswires) -- USDCAD and USDMXN have rallied back to being a little firmer than Friday's close after riding a wild rollercoaster ride on Monday that ultimately saw United States tariffs postponed, said Scotiabank.

Babj of Canada rate cut pricing for the March meeting was initially cut in half and is on Tuesday around two-thirds of a cut priced versus more than a full quarter-point cut that had been priced, noted the bank.

A full quarter-point cut has been wiped out for this year and now has markets thinking maybe two 25bps cuts, stated Scotiabank.

Canada's retaliation and some silly performative measures worked in getting U.S. President Donald Trump to back down on his tariffs threat, but much bigger risks and high volatility are ahead, added the bank.