Due to tariff risks, the Canadian dollar is facing a new period of weakness

On February 7th, Jinshi data, analysts at UBS Global Wealth Management said in a report that due to the lingering risk of US tariffs, the Canadian dollar will face a new period of weakness in the short term. They said that the market’s reaction to Trump’s proposal to impose a 25% tariff on Canada was quite mild, and the market reaction completely reversed after the implementation of the tariff was delayed. Although it is unlikely that the tariff will be implemented in this form, ‘some risks of unfavorable trade actions still exist.’ In the coming months, the US dollar against the Canadian dollar may rise from the current 1.4313 to 1.46. UBS said that even without imposing tariffs on Canada, this situation may occur purely due to the strengthening of the US dollar.