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Market Impact: 0.35

Canadian dollar overtook yen as most heavily shorted currency before Trump’s latest tariff threats

Currency & FXTrade Policy & Supply ChainElections & Domestic Politics

Bearish positioning against the Canadian dollar surged to the highest level among major currencies in the weeks leading into Trump’s Canada tariff announcement. The loonie weakened to a recent 14-month low, indicating tariff-driven risk and FX downside pressure, likely supporting continued volatility in CAD-sensitive assets.

Analysis

Bearish positioning against the Canadian dollar surged to the highest level among major currencies in the weeks leading into Trump’s Canada tariff announcement. The loonie weakened to a recent 14-month low, indicating tariff-driven risk and FX downside pressure, likely supporting continued volatility in CAD-sensitive assets.

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mildly negative

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