Commerzbank: Canadian Dollar Downtrend Unlikely to Reverse

Commerzbank analyst Michael Pfister argues that the Canadian dollar’s downward trend is unlikely to be reversed by domestic factors. Citing recent Canadian labour market data and the Bank of Canada’s latest monetary policy decision, Pfister notes that domestic monetary policy lacks the impetus to shift the current trajectory.

The key driver for the Canadian dollar remains the broader strength of the US dollar. According to Pfister, as long as USD dynamics dominate, the CAD downtrend is likely to persist regardless of domestic data releases.