And it now looks like USD/CAD is the FX market's lightning rod for the tariff story, ING’s FX analysts Chris Turner notes.
"This is evident in the FX options market, where the one-month skew for USD calls and CAD put options remains high at 1.7% vols in favour of CAD puts – not far off the last January peak near 2.00% vols. Investors are clearly worried that tariffs are not merely negotiated away in Canada."