The Canadian dollar is at risk of falling to lows only seen during big economic shocks as forces once again line up against the currency, economists warn.
The Bank of Canada cut its interest rate by half a percentage point this month, widening the gap between it and the United States Federal Reserve, which puts pressure on the loonie.
The Fed made its own large cut in September, but the resilience of America’s economy since then has led to speculation that it won’t ease as much as expected, said Benjamin Reitzes, Canadian rates and macro strategist with BMO Capital Markets.
The Canadian economy, on the other hand, is showing no signs of momentum, suggesting that more rate cuts are to come.[…]
The current 125-basis-point spread between the two policy rates is the widest it’s been in at least two decades, and it could widen in months to come, putting more pressure on the Canadian dollar, said Ste-Marie.
Renegotiated USMCA is a $C risk.
Tariff regime is a $C risk.
Deflating oil / energy price is a $C risk.
Smart Gov of Canada would cozy up to USA not to China. We do not have a smart Gov of Canada.
Dear Leader and his loyal stenchmen will have us down to 40c USA before he is gone.
And his fellow travellers will tell us we are now all billionaires.
As a wheelbarrow of Trudeau Bucks will not buy an imported button.
But you will probably be shot by one of Justine’s People ,who wants your wheelbarrow.
Zimbabwe Mon!.
Notice how The Communist Bitch Club,CBC to yer friends,never mentions Venezuela anymore?
Three times now John, I guess someone does not like me referring to digital currency????
Apparently saying digital currency eliminates wheelbarrows is not allowed.
Just maybe…. a modest reduction in income tax coupled with… say cutting corporate taxes by a third would just about do it. That coupled with some modest austerity and flushing Trudeau and his grifters would have Canada up and about in…. 16 months or so.
But no… against all reason they’ll cut the rate first, expecting different results.
And returning the capitol gains tax to what it was before.
Got gold? Got silver?
AU, AG yeah that is subject to capital gains tax too.
Liberals reigning over wealth destruction.
This shouldn’t surprise anyone.
Dear leader is busy killing the economic engines of the nation. Please don’t distract him.