Resilient Loonie Meets Softer Dollar. Forecast as of 29.01.2026

While Donald Trump calls Canada the 51st state of the US and its prime minister a governor, Ottawa is entering into a partnership with China. Against this backdrop, the US leader is threatening to impose 100% tariffs on Canada. Let's discuss this topic and make a trading plan for the USD/CAD pair.Major Takeaways Canada and China are lowering tariffs. The Trump administration is threatening Canada with 100% tariffs. The Bank of Canada has kept its rate unchanged at 2.25%. Short trades can be cons