In a risk-averse atmosphere, the Canadian Dollar is prone to discover it tough to carry its floor in opposition to the US Dollar, within the opinion of economists at Commerzbank.
Limited CAD restoration potential in opposition to the USD
“The jitters on the financial markets led to increased risk aversion recently. In such an environment, it is difficult for the Canadian Dollar to hold its ground against the USD.”
“We have adjusted our forecasts, but continue to see limited CAD recovery potential in the medium term.”
Source: Commerzbank Research