# A perfect storm for the Canadian dollar | articles | ING THINK

> The Canadian dollar has lost its low-volatility safe-haven status as USD/CAD trades near pandemic highs. Implied volatility rose to the highest among G10 currencies relative to historical volatility, driven by Trump's threat of 25% tariffs on Canadian goods, Bank of Canada cuts and political turmoil. ING sees a full North American trade war pushing the pair toward 1.50.

- Date: 2024-12-18 · published 2024-12-18T12:00:00.000Z
- Category: trade · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/27210-a-perfect-storm-for-the-canadian-dollar-articles-ing-think
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Canola Meal](https://feedsoft.ai/c/CANMEAL.md)

## Why it matters

A North American trade war with 25% tariffs would hit Canadian agricultural and energy exports and could redirect flows across the continent. Tariff risk and a weaker loonie together move the price of grain and oilseed trade between Canada and the US.

## Read by commodity

- USDCAD: bullish ▲
- CANMEAL: neutral

## Sources

- think.ing.com: https://think.ing.com/articles/a-perfect-storm-for-the-canadian-dollar/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.