The Canadian dollar strengthened to a nine-day high against its U.S. counterpart on Thursday as Canada's trade surplus widened more than expected and investors weighed prospects of additional reprieves from U.

Loonie markets are recovering ground as the Trump administration begins to pivot away from its own tariff policies. Key labor data still looms large at the end of the week with Canadian employment figures and another round of US Nonfarm Payrolls net jobs additions.

The greenback was supposed to get a boost from tariffs. That’s not happening, even with the stock market falling.