Canadian Dollar Hits New Low Scramble Downside Protection 2024 12 18
ReutersDEC 2024
Canadian Loonie Hits 4-Year Low Amid Political Crisis
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The Spin
Narrative A
There's no telling if new border security measures being announced by the Canadian federal government and the provinces will placate Trump. That means other measures must be taken to get the Canadian economy some wins or the loonie could drop further and maybe even hit a record low.
Narrative B
Those who've been bearish on the Canadian economy have reasons to reverse their outlook. Trump's demands may now be placated and the Bank of Canada is confidently orchestrating a go-slow approach to interest rates. A more business-friendly government should also be on the horizon.