Analysts at National Bank of Canada explain that the Canadian dollar is the best performing major currency so far this year, mainly thanks to June’s surge.
Key Quotes
“Higher oil prices and narrowing Canada-U.S. differentials, courtesy of the Fed’s dovish turn and better-than-expected Canadian economic data, are lifting the loonie.”
“There is room for those two drivers to push USDCAD below 1.30 this summer. We, however, acknowledge risks the loonie may head the other way, i.e. depreciate versus USD should the global economic outlook darken, via say an escalation of trade protectionism.”
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