USD/CAD remains unable to put a significant distance from year-to-date lows at 3.3590.

• The US Dollar remains on the defensive despite strong Nonfarm Payrolls data.
• Concerns about the impact of tariffs have resurfaced with the July 9 deadline looming.
• Trump's Tax bill has been finally approved, which increases fears about US fiscal health.
  

The US Dollar is failing to take any significant distance from year-to-date lows and remains capped below 1.3600 on Friday, unfazed by the strong US Nonfarm Payrolls report and the dwindling hopes of Fed cuts in July.

The Greenback ticked up on Thursday after the NFP report showed a larger-than-expected increase in net employment in June, but it was capped at 1.3610, and remains depressed below the 1.3600 level on Friday, with the nine-month lows, at 1.3555 in short distance.

US tariffs and debt woes hit the US Dollar

Market sentiment turned sour on Friday, as the focus shifted to Trump's tariff deadline, on July 9, and with US trading partners awaiting letters that will inform them about their respective tariffs.

Investors' concerns that those levies will spur inflation and curb economic growth have been undermining the US Dollar over the last few months and continue doing so today.

Beyond that, the US Congress finally passed Trump's sweeping tax bill, a package that is expected to increase the US $36.2 trillion debt by an additional $3.3 trillion in the next 10 years and has boosted fears about the sustainability of the country's fiscal deficit.

All this is keeping the US Dollar's upside attempts limited and offsetting the impact of the relatively low Crude prices on the commodity-sensitive loonie, in a week with little relevant data from Canada.