The Canadian currency was trading 0.1% higher at 1.3825 per U.S. dollar after hitting its strongest intraday level since January 6 ‌at 1.3786

The Canadian dollar ​strengthened to a two-week high against its U.S. counterpart on Wednesday before ‌paring its gains, as investors monitored developments at the World Economic Forum in Davos and awaited talks to renew a continental trade pact.

The Canadian currency was trading 0.1% higher at 1.3825 per U.S. dollar, or 72.33 U.S. cents, after hitting its strongest intraday level since January 6 ‌at 1.3786.

It feels like a mini reset for the loonie that ​had been under pressure since late December, said Amo Sahota, director at Klarity FX in San Francisco.

We don’t envisage the loonie going on a powerful rally to retest ‍the December USD-CAD lows near 1.3650. The USMCA renegotiations set for mid-year are a notable headwind and domestic terms of trade are soft with sluggish oil prices, Sahota added.

The U.S.-Mexico-Canada Agreement, which has shielded ⁠much of Canada’s exports from U.S. tariffs, is set for review by a ‍July 1 deadline.

The U.S. currency recouped some of the previous day’s sharp decline against other major ‌currencies ‌as the country’s president ruled out military action in Greenland but said he was seeking immediate negotiations to discuss a deal to acquire the northern island from Denmark.

The price of oil, one of Canada’s major exports, gained 0.6% to $60.73 a barrel as investors assessed a temporary shutdown at two large fields in Kazakhstan. Still, oil was trading toward the ‍bottom of its range in recent years.

Producer prices in Canada declined 0.6% in December from November as energy prices dropped. The annual growth rate slowed to 4.9% from 5.9%.