Divergence in Interest Rate Policies Raises Concerns for the Canadian Dollar
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#f960beb7 ver:0.29

The divergence in interest rate policies between the Bank of Canada and the U.S. Federal Reserve raises concerns for the Canadian dollar. If the Bank of Canada's rate falls too far below the Fed's, it could negatively affect the loonie, making imports from the U.S. more expensive and putting upward pressure on inflation. Traders are advised to add protection to their portfolios against a falling Canadian dollar. Additionally, potential delays in the Trans Mountain pipeline expansion could cost oil producers millions of dollars in lost revenues. The euro poses a bigger risk to the loonie than the greenback, and experts predict volatility in the Canadian dollar due to the interest rate divergence. The outlook for the Canadian dollar in 2024 depends on positive outcomes in housing, consumer spending, China, energy, and broader USD weakness....

#newstr #InterestRates #BankOfCanada #UsFederalReserve #CanadianDollar #Inflation #EconomicData 

 https://here.news/story/f960beb7?ver=0.29