# USD/CAD: Downgrade to Canada’s rating highlights risks to CAD’s outlook – MUFG — Octa

> Analysts at MUFG said Fitch's June 24 downgrade of Canada's sovereign rating from AAA to AA had limited impact on the Canadian dollar. They expect CAD to rise against the greenback over the medium term, with risks from the Bank of Canada's balance sheet expansion and US COVID cases. Correlation analysis shows CAD is now driven more by equities than oil.

- Date: 2020-06-26 · published 2020-06-26T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/52863-usd-cad-downgrade-to-canada-s-rating-highlights-risks-to-cad-s-outlook-mufg-octa
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A stronger CAD would lower the cost of Canadian imports for feed buyers, while oil and risk sentiment remain the main drivers. Direct feed price implications are minimal.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/831687/

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