- Analytics
- News and Tools
- Market News
- Loonie could see an interval of weakness – NBF
Loonie could see an interval of weakness – NBF
The return of volatility to currency markets did not spare the Canadian Dollar from seeing some substantial movement during the month of September into early October. Economists at the National Bank of Canada analyze Loonie’s outlook.
CAD could stabilize and even appreciate in the later part of 2024
Looking at the drivers for the CAD, the short-term yield differential and still high Oil prices should be conducive to a stronger Dollar. That said, the recent risk-off USD appreciation has pushed back most major currencies. The rise of long-term yields hasn’t been accompanied by a significant reduction on the short end of the curve and leaves a lot of questions in regard to where the cycle is headed.
We believe the repricing of hikes for the Bank of Canada is likely overdone and the CAD could see an interval of weakness especially if the economy is to fall in technical recession in the coming quarters.
Our scenario also assumes difficulties for the US economy in the coming months and that should be accompanied by an easing in monetary policy by the Fed. That could set up a stabilization of the Canadian Dollar and even some appreciation in the later part of 2024.
© 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
