Video: The case for a Canadian dollar comeback in the second half of the year
USD/CAD started the year at 1.37 and has risen to 1.42. I expect we round trip. The USMCA negotiations are top of mind right now but the ‘ask’ side from the US is manageable and I see plenty of signs of confidence on the Canadian side. There will be some token concessions but – after some brinksmanship – there should be some clarity and a relief rally. If anything, the risks are all to the CAD upside as there is a high likelihood of lower tariffs for steel, aluminum and perhaps lumber.
On Monday we got the Q2 business outlook survey from the Bank of Canada. In Q1, it showed solid business sentiment despite the headwinds on trade and the Iran war. Most importantly, the outlook for investment spending rose to the highest since 2024 and the second best levels since 2022.
I spoke with BNN about the outlook for the loonie but we also touched on some bigger trends in the world, including anti-immigration and the hidden drag that AI will have on the US dollar.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
As Starlink challenges telecom operators' pricing power, AT&T (T.US) sells its Mexico business for $2 billion, shifting focus to AI connectivity demand.
AT&T has agreed to sell its Mexico operations to Televisa and Fintech for $2 billion. The transaction is expected to be completed in the first quarter of 2027, pending approval from Mexican regulators.
Dovish Signals Boost Markets: Asia-Pacific Stocks Rebound, South Korea Shares Jump Over 1% Ending Five-Day Slide, Taiyo Yuden Surges 7%
On Wednesday, the MSCI Asia-Pacific Index rose by 0.2%, making a slight rebound from the low point reached on Tuesday, the lowest since August. South Korea's Composite Index briefly rose by over 2%. SK Hynix and Samsung Electronics both surged more than 3% during trading, then fell back. The Nikkei 225 expanded its gains to 0.53%. MLCC giant Taiyo Yuden led the AI hardware sector, while Fujikura rose nearly 4%. The yield on 10-year US Treasury futures remained at 5.21%, up 0.5 basis points from Tuesday.
Apple (AAPL.US) is the “ultimate answer” for AI investments? Amid a semiconductor crash, it hits $5 trillion again; foldable iPhone and AI home devices ignite growth imagination
While the Philadelphia Semiconductor Index has fallen for five consecutive days with a cumulative drawdown of over 8%, Apple hit a historic intraday high of $348.15 on October 13, with its market capitalization surpassing $5 trillion again; it closed at $341.27, with a market value of approximately $4.98 trillion.
Crypto prices
More
