Canadian Dollar's Underperformance Looks Overstretched -- Market Talk

Dow Jones
01/19

1539 GMT - The Canadian dollar has lagged other G-10 peers recently but this looks unjustified given its solid fundamentals, HSBC analysts say in a note. The Canadian economic activity and inflation data continue to exceed expectations, they say. This warrants an increase in its implied rate path in overnight index swaps. "Recent escalation in geopolitical risk that results in a floor under oil but continued rallies in risk assets make the currency stand out given its positive correlation with oil yet strong correlation to movements in equity markets." HSBC expects the U.S. dollar to fall to 1.35 Canadian dollars in the first quarter, from 1.3867 currently.(renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

January 19, 2026 10:39 ET (15:39 GMT)

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