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Scott Barlow notes that the Canadian dollar is highly sensitive to the two-year yield spread against the US, which is at about minus 71 basis points, with the loonie near 75.5 US cents. Consensus forecasts expect the spread to narrow by year end, while recent weak domestic economic reports argue for caution.
Rate-spread dynamics drive the loonie, which affects Canadian export competitiveness and the relative value of Canadian-origin commodities, though the impact on feed prices is indirect.
theglobeandmail.comScott BarlowJan 30, 2019Not enough comparable past events yet for a historical read.
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.
