According to a recent report from COINOTAG News, U.S. Bank has highlighted a cautious yet optimistic outlook regarding possible tariff negotiations that could affect the foreign exchange market. Kenn Brendan McKenna, a strategist at U.S. Bank in New York, emphasized the importance of prudence when interpreting comments regarding tariff discussions, particularly those not directly from the President. He noted, “It is advisable not to act impulsively on statements not directly attributed to Trump.” McKenna advocates for a defensive investment approach, promoting a focus on safe-haven assets amid ongoing geopolitical tensions.
Should the anticipated tariff reductions materialize, McKenna predicts a resultant positive impact on currencies such as the Canadian dollar and Mexican peso, alongside a broader relief rally across the entire FX market. This sentiment follows prior remarks from the U.S. Commerce Secretary, who suggested that a compromise on tariffs or potential exemptions could be forthcoming, underscoring a critical inflection point in U.S.-Canada-Mexico relations.