Commodity Currencies Still Vulnerable
Danske expects that both the Bank of Canada and Federal Reserve will hold rates steady over the second half of 2023.
It does, however, consider that market pricing is more out of line for the Federal Reserve than the Bank of Canada which will lead to a weaker bias for the Canadian currency against the US unit.
Nevertheless, it considers that the Canadian dollar is in a relatively strong position relative to other commodity currencies which will limit selling pressure.
Danske expects that both the Bank of Canada and Federal Reserve will hold rates steady over the second half of 2023.
It does, however, consider that market pricing is more out of line for the Federal Reserve than the Bank of Canada which will lead to a weaker bias for the Canadian currency against the US unit.
Nevertheless, it considers that the Canadian dollar is in a relatively strong position relative to other commodity currencies which will limit selling pressure.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.