Most recently, USD/CAD has principally trended upwards. But economists at Commerzbank see moderate upside potential for the Loonie.
US debt ceiling row versus rate hike expectations
“CAD is unable to keep up; and clearly the uncertain outcome of the row about the debt ceiling is having a bigger effect than the rising rate expectations for Canada (stronger compared with the US).”
“From our point of view this entails moderate potential for further CAD recovery against USD once it becomes clear that an agreement can be reached at the last minute.”
“It cannot be excluded that the market will also see a higher likelihood of a Fed rate hike after the US debt conflict is resolved, but CAD should at least be well supported against a Dollar which remains in good demand.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD stays pressured near 0.6500 as Trump tariffs threat outweighs upbeat data
AUD/USD stays under pressure near 0.6500 in Asian trading on Monday. The pair remains weighed down by a flight to safety in the US Dollar amid US President-elect Trump's fresh tariffs threat on BRICS, which offset better-than-expected Australian Retail Sales data and Chinese Caixin Manufacturing PMI.
USD/JPY retakes 150.50 on trade war fears-led US Dollar rebound
USD/JPY stages a goodish recovery from over a one-month low to test 150.50 in Monday Asian session. The pair rebounds amid a pickup in the USD demand. Trump's tariff threats and geopolitical risks benefit the safe-haven US Dollar while the Japanese Yen struggles amid BoJ's rate hike uncertainty.
Gold price remains heavily offered amid renewed USD buying interest
Gold price meets with heavy supply on Monday and snaps a four-day winning streak. Rebounding US bond yields help revive the USD demand and weigh on the commodity. Trade war concerns and geopolitical risks do little to lend support to the XAU/USD.
Bitcoin consolidates while ETH, XRP rallies
Bitcoin consolidated on Monday following its recovery from last week's pullback. At the same time, Ethereum and Ripple extended their rallies, driven by investors reallocating capital from BTC to altcoins, signaling the potential for continued upward momentum.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.