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RBC Economics argues the Canadian dollar's six-year high of 83 US cents in early June was likely the peak for 2021. It cites a more hawkish Federal Reserve shifting sentiment toward the U.S. dollar and fading commodity support for the loonie.
The note also discusses the effects of a stronger currency on exporters and importers.
Expectations of a firmer U.S. dollar and softer commodity-linked currencies can weigh on dollar-denominated commodity prices and shift export competitiveness for Canadian agricultural products.
rbc.comJosh NyeJul 19, 2021After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
