Home USD/CAD: The loonie seems a bit overvalued – NBF
FXStreet News

USD/CAD: The loonie seems a bit overvalued – NBF

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.”

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.