# Posthaste: Why CIBC thinks the loonie is 'clearly overvalued' - Financial Post

> CIBC economists said the Canadian dollar is clearly overvalued and expect the U.S. dollar to lose some of its safe-haven bid by the end of 2020. They forecast USD/CAD at 1.33, which would leave the loonie slightly stronger by year-end. They also said a brief gain for the loonie could come from political turmoil in the U.S. ahead of the presidential election.

- Date: 2020-09-30 · published 2020-09-30T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/51351-posthaste-why-cibc-thinks-the-loonie-is-clearly-overvalued-financial-post
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A forecast of a firmer loonie would make Canadian-origin commodities more expensive in U.S. dollar terms, which may weigh on export competitiveness. The view is a forecast rather than a confirmed market move.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- financialpost.com: https://financialpost.com/news/posthaste-why-cibc-thinks-the-loonie-is-clearly-overvalued/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.