Canadian Dollar Becomes Most Heavily Shorted Currency Ahead of New U.S. Tariffs
Futures traders have amassed their largest bearish bet against the loonie in nearly two years, dethroning the yen as the most shorted major currency amid tariff threats from Washington.
Speculators have pushed bets against the Canadian dollar to their highest level since August 2024, with futures traders holding 99,823 contracts positioned for a decline in the loonie. The buildup has made the Canadian dollar the most heavily shorted major currency, surpassing the Japanese yen, as markets brace for new U.S. tariffs on Canadian goods.
The wave of short positioning followed a U.S. threat to impose 50% tariffs on selected Canadian exports. The Canadian dollar was trading around 1.41 per U.S. dollar, weighed down by broad strength in the U.S. dollar and elevated U.S. interest rates, even as firmer oil prices offered some support to the currency.
More in Markets
Sources
General news and information, not individualized financial advice. Figures reflect the publication date.