The trend of the Canadian dollar in 2024 has attracted much attention, and it is said that there will be a big drama of "** two heavens". Monetary experts have expressed their opinions, with Bipan Rai of CIBC Capital Markets saying that next year's CAD trend will be a bit of a "two-phase story", unpredictable.
RAI**: The CAD is likely to come back strongly in the third and fourth quarters of next year, but the first two quarters are likely to be challenging. Macro outlook for 2024
He noted that the market will adjust interest rate expectations for the Bank of Canada and the Federal Reserve in the first half of next year, especially due to the strong performance of the US dollar in the first quarter.
In addition, Macquarie Group's Thierry Wizman agrees that the Fed's influence on the overall US dollar is crucial, which will directly affect the performance of other currencies such as the Canadian dollar.
As of Thursday afternoon, USDCAD was trading at around 1CAD 33. U.S. Dollar Canadian Dollar U.S. Dollar.
Karim Buckle, account manager at Deaglo, said in a statement on Tuesday that the dollar's interest rate advantage has diminished compared to other major currencies, and the market expects the U.S. to cut interest rates early next year.
Bank of Canada Governor Tiff Macklem recently said that it was too early to consider a rate cut, which also contributed to the appreciation of the Canadian dollar. Buckle also noted that oil prices** due to disruptions in the Red Sea region have also contributed to the appreciation of the Canadian dollar against the US dollar.