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27 Dec 2023
US Dollar to lose ground in the coming year – BMO
Economists at the Bank of Montreal expect the US Dollar to lose altitude next year.
Loonie could mildly benefit relative to a sagging Greenback
A more dovish Fed, a cooler US economy, and a drive by many emerging markets to move away from the big Dollar point to some softening in the year ahead.
Meantime, the Canadian Dollar now largely dances to the tune of the USD itself. The old link between commodity prices and the Loonie has all but gone away. While we are no Canadian Dollar bulls, the currency could mildly benefit relative to a sagging Greenback.
Stretch Call: The trade-weighted US Dollar has its biggest annual drop since 2011 when it fell by 4.5%.