Currencies
Loonie May Hit Pandemic-Era Lows on Trump Tariff Threat, CIBC Says
- The market is currently very short the Canadian dollar
- Low loonie expectations could lead to boosts on marginal news
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The Canadian dollar could fall further if US President-elect Donald Trump’s threat to put 25% tariffs on goods from the country materializes, CIBC said, but the second half of 2025 will likely provide relief to the loonie.
Sarah Ying, head of FX strategy at CIBC Capital Markets, said the Canadian dollar could test its pandemic-era low of C$1.4668 if the tariff is ultimately imposed.