Canadian Dollar Weakest Reserve Currency as Growth, Spreads Weigh – NBC
National Bank of Canada analysts point to Canada's deteriorating real growth, negative 2-year spreads vs. the U.S., and falling gold as factors driving the Canadian Dollar to its weakest among reserve currencies, with USD/CAD near 1.39.
Strategists at National Bank of Canada (NBC) highlight that the Canadian Dollar (CAD) has underperformed other reserve currencies recently, with USD/CAD trading back around the 1.39 level.
According to NBC's Stéfane Marion and Kyle Dahms, the loonie's weakness is linked to three key headwinds: Canada's worsening real growth, a negative Canada–U.S. 2-year interest rate spread, and falling gold prices.
These factors have combined to put downward pressure on the Canadian Dollar relative to its peers.
Source: FXStreet Forex News