Bullish bets have increased despite an expected global economic slowdow
Bullish Canadian dollar bets have been raised despite an expected global economic slowdown that could cloud the near-term outlook, with analysts in a Reuters poll saying the currency’s current level doesn’t reflect its fair value.
“The only issue is timing. It is very easy for markets to deviate from fair value for an extended period of time.” “The data is presenting a very uncertain picture,” Zhao-Murray said. “If the U.S. goes into recession, the question for the loonie is still unclear. It is a matter of when does the recession start and how deep is it going to be.”
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