Insights from ING’s FX analysts indicate that the option market has turned its focus on USD calls and CAD puts as it prepares for heightened volatility driven by tariff discussions. The experts note that USD/CAD is becoming a key player in the currency market, acting as a barometer for the evolving trade dynamics between the US and Canada. As tariff negotiations unfold, traders are bracing for unpredictable moves, making it essential for them to adapt their positions accordingly. With CAD put options gaining favor, it reflects growing market sentiment that anticipates further depreciation in the Canadian Dollar if tariff tensions escalate.