The pair USD/CAD has risen to start the year. Economists at the National Bank of Canada analyze the prospects for the CAD.
BOC rate cuts likely to come before Fed's
The Canadian Dollar (CAD) has come under pressure from the combination of a stronger Dollar, a slowing economy, and growing expectations for monetary policy easing. Oil prices have also not risen significantly despite renewed geopolitical pressure on the world stage.
Looking ahead, the Bank of Canada's rate cuts are likely to come before the Fed's and exacerbate the yield differential with the United States. Combined with a risk-averse USD appreciation, we forecast that USD/CAD could reach 1.4500 by the middle of this year, to recover slightly by the end of the year.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
