USD/CAD Jumps as US-Canada Trade War Fears Escalate
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The prospect of a full-blown trade war between the United States and Canada is rattling cross-border markets, with USD/CAD drawing fresh bids as investors price in tariff risk. Canada remains one of America's largest trading partners, making any breakdown in commercial ties a direct threat to the loonie's outlook.
Equity futures held largely flat over the weekend, but currency desks are already positioning for volatility once formal measures are confirmed. A prolonged standoff would squeeze Canadian exporters and widen the case for further USD/CAD upside.
Traders are watching for official statements from both governments this week, as any escalation or de-escalation signal could trigger sharp intraday swings in the pair.