It’s been a tough ride lately for the U.S. dollar. After a prolonged period of flexing its muscles against global currencies, the greenback is finally starting to cool off—and that’s catching the attention of investors, traders, and everyday Canadians.
Every few years, elections inject a fresh wave of uncertainty into financial markets. The Canadian dollar (CAD) is no exception. Whether it’s a federal election at home or a presidential race south of the border, political outcomes can sway currency values in ways that are sometimes predictable—and sometimes surprising.
The Canadian dollar used to be called the “petro-dollar” for a reason—when oil prices moved, so did the loonie. Well, those were the good old days. Lately, the Canadian dollar has been pulled in different directions by everything from V-shaped recoveries to interest rate announcements and, more recently, broader economic uncertainty. The reality is, the ground under investors’ feet keeps shifting, making the future of the Canadian dollar uncertain and much less predictable.
We might call it whiplash, but is it really whiplash if you’re expecting it?
In the last 24 hours, President Trump has floated the idea of delaying broad-based tariffs on Canada and Mexico until April 4th while also confirming that tariffs on Canada, Mexico, the European Union, and China are set to take effect next Tuesday as planned.
