Bank of Canada decision Wednesday could be major test of currency, says Desjardins strategist
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Relations between Canada and the United States have broken down to levels not seen since the dark days of January 2025, yet the currency remains “surprisingly resilient.”
The dollar has dipped since trade talks collapsed last weekend, falling about half a percentage point to around 72 U.S. cents this morning.
But it’s a far cry from early in 2025 when U.S. President Donald Trump slapped Canada with sweeping 25 per cent tariffs and our currency plunged to multi-year lows.
Back then the loonie sunk as low as 68.96 U.S. cents.
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“In stark contrast to previous U.S. tariff hikes, volatility in the Canadian dollar has thus far been remarkably low,” said Mirza Baig, foreign exchange strategist at Desjardins.
“Is this a sign of resilience or is the market being complacent?”
