07:34 AM EST, 02/21/2025 (MT Newswires) -- Following the United States administration's pause on applying tariffs to Canadian goods at the beginning of February, USDCAD came off its highs and now trades 2.5% lower -- mostly driven by the broader US dollar (USD) strength rather than CAD-related idiosyncratic factors, said UBS.

The bank thinks financial markets have become complacent about tariff risks, and rate differentials suggest the pair should trade around 1.44.

As a consequence, UBS sees value in selling downside below 1.4030 over the coming month, before the looming April tariff deadline.