The Canadian Dollar has gained ground on the greenback since the beginning of the year. Economists at the National Bank of Canada still expect the CAD to outperform the USD in 2023.

BoC unlikely to cut rates more aggressively than the Fed

“At this stage, we do not expect the Bank of Canada to cut rates more aggressively than the US in 2023, which would put downward pressure on the Loonie.”

“Speculators are currently the most bearish on the CAD since the Covid recession. A change of heart would certainly provide the impetus for the Loonie to appreciate.” 

“We still expect the CAD to outperform the USD in 2023.”