JPM G10 FX Spot Desk: USDCAD

Risk traded offered yesterday, and CAD was no exception as tariff risks continue to linger for now. As I have been writing here for a while, I did not think USDCAD had enough risk premium priced in ahead of this week, so I have been running a long position in the pair for quite some time now. This has finally started to work with the pair moving back above 1.4400 this morning as the desk saw decent demand for the pair by RM and systematic accounts yesterday. Short CAD positioning is also much cleaner now when compared to the first tariff announcements earlier in the year, which should mean there is room for people to add further and for USDCAD to rally much more from here.