Currencies
Top Forecaster Sees Loonie’s Rise Tamed by Canada Rate Cuts
Canada’s loonie had been hit by President Donald Trump’s tariffs earlier this year but has recovered since then.
Photographer: Brent Lewin/BloombergCanada’s loonie will strengthen further against its US counterpart this year but its rise will be limited by the central bank’s interest-rate cuts, according to the currency’s most accurate forecaster in the second quarter.
Royce Mendes, managing director and head of macro strategy at Desjardins Securities, expects the Bank of Canada to cut rates three times this year while markets are pricing in less than one reduction.