Further moderate CAD recovery potential in the medium term – Commerzbank

Recently, the Canadian Dollar has been able to make up some lost ground. Economists at Commerzbank analyze Loonie's outlook.

EUR/CAD should reflect the interim EUR strength expected

We see further limited CAD recovery potential against the USD due to the robust economy and a hawkish BoC. CAD should benefit if the interest rate differential between the Fed and the BoC narrows or turns positive in the medium term. 

EUR/CAD should reflect the interim EUR strength we expect.

Source: Commerzbank Research

See – USD/CAD: Further BoC tightening could lead to a gradual decline – SocGen