The Canadian dollar edged up to a two-month high against its U.S. counterpart on Friday as investors grew skeptical that the trade tariffs threatened by U.S. President Donald Trump would be as severe as first thought.

The Canadian Dollar (CAD) remains buried within consolidation against the Greenback. The Loonie briefly fell to its lowest point in two decades against the US Dollar last week, sending USD/CAD to its highest bids since 2002, but a walkback of President Trump’s tariff threats last week crippled any chance of a meaningful shift in the pair’s dynamic.

The value of the Mexican peso and Canadian dollar jumped Monday after officials from both countries said President Trump agreed to [delay wide-ranging U.S. tariffs by a month](

The Canadian dollar steadied against its U.S. counterpart on Wednesday, with the currency unable to sustain a move out of its recent trading range as the Bank of Canada worried about the economic impact of a trade war.