- Analytics
- News and Tools
- Market News
- USD/CAD: Loonie to appreciate as Canadian economy continues to show resilience – NBF
USD/CAD: Loonie to appreciate as Canadian economy continues to show resilience – NBF
The Canadian economy remains resilient. Therefore, economists at the National Bank of Canada expect the loonie to strengthen.
A red hot economy
“After a 15.7% surge in Q1 2022, Canada leads the G7 when it comes to growth in nominal GDP. With the economy firing on all cylinders, the Bank of Canada unsurprisingly opted to raise its overnight rate target 50 basis points on June 1. The odds of a 75-bp move in July are no longer trivial.”
“With the Canadian economy showing stronger momentum than the US economy, short-term interest spreads moved significantly in Canada's favour for the first time in six months. This should favour a further appreciation of the CAD against the greenback.”
“Aside from economic fundamentals, there are also technical elements that could favour CAD appreciation in the coming weeks as Canada’s bond market will be handing out more than $13 billion in coupon payments and redemption proceed.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
