Royal Bank of Canada has cut its forecast for the Canadian Dollar

Royal Bank of Canada has cut its forecast for the Canadian Dollar, citing the diverging path for interest rates in Canda vs. the US. More on that to come, but first the projections:

• USD/CAD to 1.37 by end June 2024
• 1.3850 by end September
• 1.40 by year-end
• And to a peak of 1.42 by mid-2025

Comments:

• still see the BoC delivering four consecutive cuts this year and another -100bps in 2025
• first Bank of Canada rate cut expected next month, June 2024,RBC analysts are eyeing the May 21 release of Canadian inflation data: “A BoC June rate cut is not fully priced and that may serve as a small headwind to CAD”
• first Federal Reserve rate cut expected in December 2024

This article was written by Eamonn Sheridan at www.forexlive.com.