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Following a broad-based downward trend since April, the Canadian dollar (CAD) has lost 5.76% of its value against the U.S. dollar (USD) so far this year.
This reflects a volatile outlook for the petrodollar. Nicknamed the “The loonie,” the beleaguered currency spiked to print its yearly low of 1.388 against the U.S. dollar in October, a level unseen since May 2020.
Despite the Canadian dollar’s recent 1.87% bounce to the upside against the U.S. dollar since Oct. 17, surging inflation, a hawkish Federal Reserve (Fed) and poor economic growth have contributed to U.S. dollar strength as a dominant 2022 theme.
However, six rate hikes from the Bank of Canada (BOC) in 2022 have not been enough to deter weakness against the U.S. dollar. Furthermore, the…
