The loonie could win the interest-rate differentials war before reality sets in

Corpay chief market strategist Karl Schamotta is taking a short-term, longer-term view of the Canadian dollar: “The currency weakness baton has been passed to the greenback for now,” he said in a note Thursday, adding that the loonie could “grind a few cents higher in the coming months.” But Canada’s productivity issues and debt troubles will weigh on the economy and the currency: “An extreme selloff in U.S. markets or a rapid slowing in the global economy could trigger a sharp unwind at any time, knocking the exchange rate back to early-August levels in short order." Financial Post: The loonie could win the interest-rate differentials war before reality sets in