The Loonie’s recent appreciation has been tepid considering the overall weakness of the US Dollar. In essence, the CAD has been the weakest of the strong over the past month. Economists at the National Bank of Canada analyze USD/CAD outlook.

Restrictive monetary policy in Canada can no longer be justified

The restrictive monetary policy in Canada can no longer be justified. 

As we continue to believe that rate cuts will be more aggressive on this side of the border, we still see USD/CAD moving above 1.4000 in H2 2024.