Canadian Dollar Update – Canadian dollar awaiting tariff news
- US markets closed for MLK day
- Global markets on hold for Trump inauguration.
- USD is steady but firm after quiet overnight session.
USDCAD: open 1.4470, overnight range 1.4443-1.4486, close 1.4477, WTI $77.00, Gold, $2708.48
The day of reckoning has arrived for the Canadian dollar. Donald Trump’s presidency officially begins, and Canada is waiting to see if one of his first actions as president will be to announce a 25% tariff on all imports from Canada. Any clarify on tariffs will have a significant impact on the loonie.
The provincial premiers have proposed potential retaliatory measures, but Alberta’s Premier Danielle Smith has ruled out any strategy involving export taxes on the province’s crude oil.
Canadian dollar traders have already pushed the currency pair to levels last seen in March 2020. By the day’s end, further losses seem inevitable.
Meanwhile, the Bank of Canada’s Business Outlook Survey is set for release today but will likely be overshadowed by U.S.-focused developments.
Global markets are holding their breath, focused on Washington, where Donald Trump is returning to the office he vacated four years ago.
Global markets, including FX, remain stagnant and stuck within Friday’s range.
By KBFX | January 20, 2025 | Daily Update |
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