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The Canadian dollar seems a bit overvalued relative to what would be expected from current oil prices, according to Krishen Rangasamy from the National Bank of Canada.

Key quotes

“While the BoC’s QE program is capped, the Fed’s is ‘open-ended’ i.e. no limit to how much can be purchased. A busier printing press in the US implies a bias towards Canadian dollar appreciation.”

“The loonie won’t see a near term correction/depreciation. In fact, an argument can be made that the Canadian dollar may have risen a bit too much, too fast.”