President Trump told reporters at the White House that the United States and Canada have reached a deal, though he stressed that the agreement remains subject to finalisation.

On Canada, Trump said "we've come to a deal" following what he described as a good conversation with Canada's Prime Minister Carney. He reiterated, however, that the agreement still needs to be finalised, meaning the deal is not yet fully locked in. The comments come after a three-day pause on the planned 50% tariffs, keeping attention on whether the two sides can turn the broad understanding into a formal agreement.

Trump's remarks were seen as supportive for the Canadian dollar, although much of the breakthrough had already been priced in, and the loonie is largely benefiting from broader US dollar weakness.

Turning to Iran, Trump commented on the situation around the Strait of Hormuz, saying that a large number of vessels had passed through the waterway overnight. He suggested that negotiations with Iran "may be at some point", and said that oil prices will be "a lot lower" once the war is over — an outcome that would result from the normalisation of supply flows and shipping through Hormuz. The remarks keep the focus on the shipping corridor because even short-lived disruptions there can affect energy markets and trade routes well beyond the region.

For now, markets are being driven by a surprising US Treasury announcement. It certainly does not look good for inflation if the US-Iran situation is not resolved soon.

Source: Investinglive