- Analytics
- News and Tools
- Market News
- USD/CAD: Door ajar for downside in the coming quarters – CIBC
USD/CAD: Door ajar for downside in the coming quarters – CIBC
The Loonie rallied after the Bank of Canada opted to hike rates. Economists at CIBC Capital Markets discuss CAD outlook.
CAD to rely on external factors
A clearer end to Fed hikes should begin to unwind US Dollar strength against overseas majors, helping push USD/CAD to 1.32 by the end of Q3, with more firming for the Loonie in store for 2024.
The USD still looks unsustainably strong against other major currencies, and higher inflation in Europe will keep the threat of additional monetary tightening alive a bit longer overseas, taking some of the shine off of the greenback. We don’t see that taking USD/CAD below 1.28 next year, a bit less of a Loonie appreciation than expected for some other majors that have more room to run.
Oil prices could firm up later in 2024 as markets eye a global economic rebound, but these days it takes a much larger move for that to meaningfully lift the loonie relative to other majors, given the reduced response in Canadian oil and gas capital spending in a tighter regulatory climate.
© 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
