JPMorgan Sees 'Massive' Demand for Loonie Hedges on Tariff Risks.

Investors are increasingly seeking protection against a weaker Canadian dollar due to the threat of US tariffs on Canadian imports. JPMorgan Chase & Co. reports a surge in options trading volume for the US dollar-Canadian dollar pair, with record levels of protection being sought. The demand for hedges has pushed risk reversals to levels not seen in over two years, indicating a bearish sentiment towards the Canadian currency. Additionally, Nomura Plc recommends shorting the loonie against the Australian dollar, anticipating a 3% increase in the pair due to potential tariffs on China by the Trump administration. [Extracted from the article]