“Macquarie analyst David Doyle, however, sees a larger macroeconomic theme that will drive U.S. economic outperformance of its northern neighbor and propel the loonie to fresh lows against the greenback. Based on similar historical examples, this rough patch for the Canadian dollar could last up to 10 years,” reports Bloomberg.
Some observers have warned of a bubbling real estate sector, and traders have bet against Canadian real estate through shorting Canadian banks. In the meantime, the national median home price continues to climb to all-time highs. We will have to monitor how the government plans to engineer a soft landing for the real estate market in an attempt to mitigate a potential fallout.
Looking ahead, Canada’s market could experience further volatility around the October elections as political runners plan the future of the country’s infrastructure development, access to markets and climate policy over the next five years.
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