Canadian Dollar Tumbles 0.6% to C$1.3844 as 50% US Tariffs Threaten Growth
Updated
Updated · Yahoo Finance · Aug 24
Canadian Dollar Tumbles 0.6% to C$1.3844 as 50% US Tariffs Threaten Growth
3 articles · Updated · Yahoo Finance · Aug 24
Summary
C$1.3844 per US dollar marked the loonie’s weakest level in more than two months, leaving it the worst performer among G-10 currencies after US-Canada trade talks collapsed.
50% US tariffs on billions of dollars of Canadian goods are threatening an expected economic pickup, while Prime Minister Mark Carney’s pledge to retaliate dollar for dollar adds to investor concern.
CFTC positioning suggests the selloff could extend because hedge funds had recently trimmed bearish loonie bets from a two-year high, leaving room to rebuild short positions.
MUFG sees the currency sliding to C$1.41 in the third quarter, while BBH said an escalating trade war could cut expectations for roughly 70 basis points of Canadian rate hikes now priced through June.
US rate-cut expectations could still limit a sharper move, with BBH arguing USD/CAD may struggle to overshoot 1.4000 even if the trade conflict deepens.