The Canadian dollar had a rough week against its U.S. counterpart, wiping out the loonie’s gains from the previous week. The USD/CAD exchange rate is nearing the 1.3500 mark our economists had forecast for the end of the quarter. This is an attractive level for USD sellers looking to put in place hedging.
Three main themes can be identified to explain the fluctuations in the USD/CAD pair last week:
- International politics, with elections in France and comments from President Trump about renegotiating trade deals
- Declining crude oil prices (WTI), slumping more than 6% in five days
- Other geopolitical risks