USD/CAD: Policy divergence pummels the Loonie – MUFG
|USD/CAD pushed higher and touched its strongest level since October at 1.3817. Economists at MUFG Bank expect the Loonie to remain under pressure.
Clear policy divergence lifting USD/CAD
“While we expect the US economy to slow more as well in response to higher rates it is happening with more of a lag that is opening up a widening policy divergence between the BoC and Fed in the near-term.”
“Short-term yield spreads between the US and Canada have hit fresh highs this week taking out the highs from late last year, and are placing further upward pressure on USD/CAD that has jumped from around 1.3600 to 1.3800.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.