# The year ahead is going to get nasty for the loonie - The Globe and Mail

> Market strategist Scott Barlow expects the Canadian dollar to weaken in 2017 as the Bank of Canada and the Federal Reserve move in opposite directions. The two-year Canada-US yield spread is cited as a strong predictor of the loonie's value. Recent Fed hikes have pushed US yields higher relative to Canadian yields.

- Date: 2016-12-23 · published 2016-12-23T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/73710-the-year-ahead-is-going-to-get-nasty-for-the-loonie-the-globe-and-mail
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Expected loonie weakness would lower the US-dollar cost of Canadian exports, and the rate divergence signals continued currency pressure through 2017.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/globe-investor/inside-the-market/loonie-set-for-a-bad-year/article33399621/

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