Jan 31, 2025
Forex markets brace for Canada, Mexico swings as US tariff deadline looms
A deadline for U.S. tariff hikes on two of its top trading partners has global currency markets braced for increased volatility, FX options signal, with the Canadian dollar in the crosshairs. President Donald Trump set the Saturday deadline to impose 25% tariffs on imports from Mexico and Canada in an effort to push them to halt illegal migrants and fentanyl from entering the U.S. Implied single-week Canadian-dollar volatility covering the period over the weekend has jumped to its highest since October 2022.