USD/CAD: Limited potential for a Loonie recovery medium-term – Commerzbank

The Loonie eased following the Bank of Canada meeting. Economists at Commerzbank do not expect the CAD to see gains ahead.

Inflation data to be decisive for the further CAD outlook

“Inflation data is likely to be decisive for the further CAD outlook. If it contradicts the impression of a significant fall in inflation this might fuel renewed rate hike expectations which would benefit the Loonie.”

“The US data and market expectations on the US central bank clearly also constitute an important driver for USD/CAD though. We confirm our outlook and see limited potential for a CAD recovery medium-term.”