According to analysts from Deutsche Bank, the Loonie (CAD) is likely to trade lower against the US dollar amid some negative factors persisting in the Canadian economy. Key Quotes: “CAD has been bounced between an extremely weak Q4 and poor leading indicators on one hand, and oil-price strength on the other, which we think is fundamentally sustainable. The corresponding dovish shift now has the market pricing a policy rate cut (-3 bps for July) in light of the widening output gap in December (-0.4%). The risk is that the transitory weakness, now expected the last for all of H1, develops into a longer lasting downturn.” “The Bank of Canada will remain in a holding pattern for the near term which appears sensible in the context of the Fed pause and the fact that the current gap in US-Canada policy rates is equal to that observed at the peak of the last two policy cycles.” “Tentative signs of a rebound in manufacturing sales (Jan) and wage growth (Feb), together with further oil-price upside should reduce the probability of more extreme scenarios (e.g., USDCAD at 1.40). However we keep a bullish bias (targeting USDCAD 1.36 by year-end) in light of longer-lived negative factors persisting, as the housing market remains a drag on construction, and household consumption growth is limited by debt service ratios reaching a record high.” 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. View All Post By FX Street FXStreet News share Read Next S&P500 Technical Analysis: US Stocks jumping to a new 2019 high FX Street 4 years According to analysts from Deutsche Bank, the Loonie (CAD) is likely to trade lower against the US dollar amid some negative factors persisting in the Canadian economy. Key Quotes: "CAD has been bounced between an extremely weak Q4 and poor leading indicators on one hand, and oil-price strength on the other, which we think is fundamentally sustainable. The corresponding dovish shift now has the market pricing a policy rate cut (-3 bps for July) in light of the widening output gap in December (-0.4%). The risk is that the transitory weakness, now expected the last for all of… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.