The Canadian Dollar hit the skids Thursday, falling against all of its developed world rivals, after the latest trade salvo from the White House was seen further undermining the already-dim prospect of a deal to save the North American Free Trade Agreement being agreed any time soon.
The Canadian Dollar outlook is growing dimmer by the day, according to strategists at Toronto-based investment bank TD Securities, who argue clients should sell the Loonie against the US Dollar and the Aussie as well as New Zealand Dollars.
The Canadian Dollar reversed course and slumped during the noon session Friday after data showed a surprise contraction in the value of Canadian retail sales at the end of the first-quarter, which overshadowed steady inflation number and higher oil prices that had previously supported the currency.
The Canadian Dollar rose across the board Friday as oil prices eged higher and markets held onto hopes that an agreement can be reached on the future of the North American Free Trade Agreement, despite a deadline for a deal to be reached having elapsed on Thursday.
The Canadian Dollar is likely to recover lost ground from the US Dollar and hold its own against a strengthening Pound during the months ahead, according to the latest forecasts from J.P. Morgan, as the US Dollar rally of recent weeks has likely already reached its zenith.
The Canadian Dollar entered the new week on the front foot Monday, scoring gains over approximately half of the developed world currency basket, as markets appeared unfazed by a crucial May 17 deadline for a renegotiation of the North American Free Trade Agreement draw that is drawing near.
Technical studies suggest the Pound is likely to remain under notable pressure against the Canadian Dollar over coming days and weeks. But, watch British employment numbers and Canadian inflation data this week for near-term volatility.