The canadian dollar slid to a weekly low and local bonds rallied after us President Donald Trump Said He Delhi Raise Steel and Aluminum Tariffs on Canada to 50%, Dualing A Planned LEVY SET to Take Effect Affects on Wednsday.
The Loonie Fell as much as 0.6% versus the greenback to c $ 1.4521, The Currency’s Weakest Level Since March 4. Tuesday’s Decline Expended The Loonie’s Losses So far Fur this month – It ‘ Group-of-10 currency to fall against the us dollar in March.
Trump’s on -gain, off-thegain tariff threats show sparking a recession in canada. The country’s currency has been weakened while traders have been
Ahead of the bank of canada’s meeting and after Trump’s tariff Announcement TuesDay, Swaps Markets Wholly Price Price In A Quarter-Point Cut-Up from A Coin-Toss as Recently as the carening of the month. The Yield on Canada’s Benchmark 10-Year Debt Fell to 2.94%.
Greater Uncertainty
“More of Trump’s tariff Threats are adding green for uncertain for canadians – especially the steel and aluminum tarifs as we are still unsured what the details will be,” Sarah ying, “Sarah ying, always Strategy at Cibc Capital Markets. “We suspect trade uncertainty will be a key driver of the bank’s decision tomorrow.”
Goldman Sachs Group Inc. Economists Megan Peters and Joseph Briggs Now Expect Officials LED by Governor Tiff Macklem to Ease Rates INTEAD OF HOLDING STEADY. The firm’s Interest-Rate Strategists recommend investors holds betting on a steeper canadian yield curve, which would benefit if the Central Bank Front-Loads Easing.
Thos views align with bearish loonie Senior in the Foreign-Exchange Markets. Derivatives Positioning Suggessts Traders are Primed for Further Losses in the Canadian Currency, even as the Greenback Comes of Its Worst Run of Losses Since 2022.
Speculative traders hold a roughly $ 10 billion short on canada’s dollar, according to the latest data related by the communication futures trading communication through march 4 and aggregated by bloomberg. Meanwhile, Risk Reversals – a measure of options sentiments that gauges the premium investors are willing to pay for calls versus puts – Show a bearish loonie stance climbing CONSIDERIBLY SININING OK Year.
“It’s just a constant onslaugt of headlines from the white house,” Molly Schwartz, A Macro Strategist at CoopetiGist at Coopetive Rabobank in New York, Said Ahed Ahed of Trump of Trump ‘ “The Canadian Economy will take a real hit long tariffs come to fruition.”
Schwartz and Her Team Expect the Boc to Cut Rates by 25 Basis Points on Wednsday and for the Benchmark Rate to land at 2.50% by year-end. While Not Rabobank’s Base Case, The Imposition of Broad-Based, 25% Tarifs on Canada Would Drag The Loonie Some 6% Lower to C $ 1.53 per dollar, they Wrote Man.
