Daily digest market movers Loonie buckles after tariff threats and Israel ceasefire

The Loonie found a fresh 55-month low on Tuesday, sending USD/CAD to 1.4178 in intraday trading.

President-elect Donald Trump reiterated his campaign threats to impose sweeping tariffs on all goods imported into the US, verbally targeting Canada with an across-the-board 25% import fee when he takes office in January.

Markets broadly shrugged off the economically devasting threat as investors continue to believe former President Trump will be dissuaded from revisiting the Smoot-Hawley era of US history that devastated the US economy during the Great Depression.

Israel has inked a ceasefire deal with Lebanon, sending Crude Oil markets lower and dragging the Canadian Dollar lower in a knock-on effect as the Loonie remains exposed to Crude Oil prices.