The Canadian dollar is set to edge lower over the coming months as the threat of U.S. trade tariffs remains in place despite an early reprieve, but the currency is expected to recover and trade at a higher level in one year,

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 was back to flirting with the 70 cents U.S. level on Tuesday with the immediate threat of a trade war on hold for the next month. On Monday, it was a question of how low the loonie could go as it fell below 68 cents U.

The Canadian dollar steadied near a two-week high against its U.S. counterpart on Wednesday as data showed Canada's trade balance shifting into surplus, with the currency holding on to its gains since Canada won a reprieve from U.