CAD Drops Sharply Amid Talk of Tariffs on Imports

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3970-1.4180

Euro                 1.4740-1.4950

Sterling            1.7650-1.7860

WTI Oil (opening level) $69.24

The CAD is opening at 1.4094 ( 0.7095)

Overnight the CAD traded as high as 1.4178

It was huge move based on Trump saying that on his first day in office he vows tariffs on Canada and Mexico of 25% and China of 10% on all imports coming into the USA.

It was looking at the currency jump off a cliff!! The reaction in the market was swift and brutal.

This is a perfect example of 'jaw boning'. Where words are spoken but nothing actually done. And the market moves on the 'news'.

We have a holiday week and end-of-the-month before a long wait for the arrival of the Trump administration on January 20. So I would not expect a massive move again for the rest of the week, but yesterday can be an wxample of how wrong I can be.