The latest Market Talks covering U.S. politics. Published exclusively on Dow Jones Newswires throughout the day.

1515 ET - The Canadian dollar is either markedly oversold or undervalued based on current CAD trading amid President-elect Trump's pledge to impose a 25% tariff on imports from Canada, says forex research firm Spectra Markets. A 25% tariff on Canadian goods "would be so damaging that it's almost impossible to handicap where USDCAD might go," says Spectra president Brent Donnelly. He says CAD volumes suggest traders are ignoring the risk that Trump follows through on his 25% pledge. "It's certainly not a zero probability that these tariffs get announced," he tells clients. He adds investors should approach CAD trades assuming tariffs lower than 25% emerge on Day One of Trump's second term, with the threat of increases over time. (paul.vieira@wsj.com, @paulvieira)

0852 ET - The euro has been struggling to keep afloat against the dollar since the U.S. election, says UBS Global Wealth Management's Dean Turner. The potential for further foreign exchange volatility is high as the new U.S. administration enters office, the economist says in a note. The euro falls to a nine-day low of $1.0470, according to FactSet, after the European Central Bank lowered rates by 25 basis points. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

December 12, 2024 15:15 ET (20:15 GMT)

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