1523 GMT - The Bank of Canada's more aggressive interest-rate cutting cycle compared to the Federal Reserve should weigh on the Canadian dollar in the near term, Convera analysts say in a note. The currency should remain structurally weaker after the BOC's policy easing ends, with rates expected to fall more than the Fed, they say. Additionally, uncertainty around trade tariffs and a Canadian government "without a strong leader" means monetary policy alone may not suffice to boost consumption and long-term productivity. The Canadian currency could recover in the second half if Canada renegotiates the U.S.-Mexico-Canada Agreement without straining key services and a Conservative pro-business agenda takes effect. It could also receive support if global growth improves, boosting commodity prices. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
February 14, 2025 10:23 ET (15:23 GMT)
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