TD sees Canadian dollar falling further
The Canadian dollar is the worst-performing G10 currency so far this year and it's about to get worse -- at least if TD is right.
Analysts at the bank say the loonie "remains our favourite short in the G10 at the moment."
Mark McCormick, TD's North American head of foreign exchange strategy, sees a few reasons for a continued decline.
"This reflects a few different drivers like rates pricing and growth momentum ... Still, in short, it boils down to the fact that much of the good news is now priced, leaving room for negative rather than positive shocks to impact the currency," he writes.
"On the local side, we note that data momentum has deteriorated from the perky levels a few months ago and turned decisively negative over the past few weeks."
USD/CAD forecasts are all over the place, with CIBC seeing 1.3150 in H2 and JPMorgan seeing 1.19 by year end.
