# Is the Canadian Dollar a Value Trap?

> 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.

- Date: 2026-11-05 · published 2026-11-05T18:08:50.991Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/82106-is-the-canadian-dollar-a-value-trap
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

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.

## Read by commodity

- USDCAD: neutral

## Sources

- poundsterlinglive.com: https://www.poundsterlinglive.com/cad/23845-canadian-dollar-value-trap-desjardins-forecast-pound-to-canadian-dollar

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