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Desjardins says the Canadian dollar is about 22% undervalued against the US dollar on purchasing power parity, and that the overshoot has lasted 20 months. The bank attributes the persistent discount to weak productivity growth, a decade-long slump in business investment and Canadian savings flowing into US AI stocks.
A persistently weak loonie lowers the cost of Canadian-origin feed inputs such as canola meal for US buyers only indirectly; the currency move is mainly a macro signal. Desjardins expects a gradual correction if investment revives and US rate differentials narrow, which would raise USD-priced Canadian commodity costs over time.
poundsterlinglive.comGary HowesNov 5, 2026Not 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.
