Canada lately has been floating a hard line against potential tariffs under Trump. A report from Bloomberg says Canada will consider export tariffs on oil, uranium and potash if Trump imposes the 25% across-the-board tariff he's tweeted about.
USD/CAD has risen about 15 pips and touched a fresh four-year high on the headlines.
To be honest, I think this is all political bluster. Trump isn't going to put 25% tariffs on Canada over border security and Canada isn't going to retaliate. It's all grandstanding.
Shares of Canadian uranium giant Cameco initially dipped on this but have quickly recovered. Canadian oil company stocks barely moved. That's a strong sign this isn't serious talk.
This article was written by Adam Button at www.forexlive.com.
USD/CAD has risen about 15 pips and touched a fresh four-year high on the headlines.
To be honest, I think this is all political bluster. Trump isn't going to put 25% tariffs on Canada over border security and Canada isn't going to retaliate. It's all grandstanding.
Shares of Canadian uranium giant Cameco initially dipped on this but have quickly recovered. Canadian oil company stocks barely moved. That's a strong sign this isn't serious talk.
This article was written by Adam Button at www.forexlive.com.