Canadian Dollar Likely to Weaken Further as Mar Low Nears

Canadian Dollar Likely to Weaken Further as Mar Low Nears

Fundamental Forecast for CAD: Bearish

  • Lower oil cost undercuts a Loonie.
  • US-Canada trade worries continue to import on a currency.
  • See a DailyFX Economic Calendar and see what live coverage for pivotal risk eventuality impacting FX markets is scheduled for subsequent week on a DailyFX Webinar Calendar.

The Canadian dollar looks approaching to exam a new low opposite a USD, opening a approach for serve falls. Price movement this week had been driven by a somewhat weaker oil complex, pulling a Loonie lower, along with ongoing trade wrangles with a US.

In a new outing to Wisconsin, US President Donald Trump betrothed to urge a US dairy attention opposite what he called Canada’s protectionist trade policies. President Trump combined that it is another instance of a biased understanding opposite a US and that “it’s not going to be function for long.”

The news is not all disastrous for a Canadian Dollar with a latest Bank of Canada process assembly (April 12) producing a somewhat hawkish tone. Bank of Canada comparison emissary administrator Carolyn Wilkins pronounced in her opening matter that “many of a mercantile information that we have seen given a final MPR have been stronger than expected,” adding that “is positively a acquire change.” Canada’s economy is approaching to grow by 2.5% this year and only next 2% in 2018 and 2019.

On a charts, a Mar 9, USDCAD high looms large, with a mangle aloft withdrawal room for a span to pierce gains done in early 2016.

Chart: USDCAD Weekly Timeframe (August 2015 – Apr 2017)

Canadian Dollar Likely to Weaken Further as Mar Low Nears

Chart by IG

— Written by Nick Cawley, Analyst

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