Loonie: not as bad as it seems. Forecast as of 24.01.2024

The USDCAD rally since early January looks rapid. However, it was not caused by the weakness of the Canadian economy but by the return of investor interest in the US dollar. Let us discuss this topic and make up a trading plan.

Weekly Canadian dollar fundamental forecast

At first glance, the main reasons for the 2024 CAD weakening are the weak dynamics of consumer spending and business investment, as well as expectations of an overnight rate cut by the Bank of Canada in April. However, in fact, the loonie performs better than most G10 currencies, and loses to the greenback due to an overestimation of market views on… Read full author’s opinion and review in blog of #LiteFinance