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The Canadian dollar (CAD), the best performing major currency of 2019, may have a tough time in 2020, as Bank of Canada (BOC) will be quick to try to curtail a significant rise, according to Shahab Jalinoos, global head of foreign-exchange strategy at Credit Suisse. 

Key quotes

The key risk is the BOC itself, which tends to talk more dovishly whenever CAD shows material strength.

The Bank of Canada’s search for a new chief may “create some uncertainty that hinders CAD appreciation. 

The CAD rose 5% against the US dollar in 2019, as the BOC kept rates steady, bucking the global easing trend. A recovery in the commodity prices in the fourth quarter also put a bid under the Canadian dollar.