Canada Shrugs Off Trade Escalation as Markets Ignore Trump Rhetoric

The trade tensions between the US and Canada escalated over the weekend, with Trump making inflammatory posts and announcing a ban on Bombardier planes.

Bombardier, the maker of Challenger and Global business jets, has more than 2,800 US suppliers, including Texas for wings, Iowa for avionics, and Indiana for motors.

The Canadian dollar is surprisingly resilient in the face of these escalations, with USD/CAD down 7 pips to 1.3807 today.

The reason may be that markets are tuning out Trump's rhetoric, or perhaps the bigger issue is the rising oil prices due to tensions in Iran and Yemen.