USD/CAD: Loonie crushed by oil – NBF

The Canadian dollar lost 6% against the USD in March, its worst monthly performance in five years. Granted, the economy is now in recession and GDP growth this year is set to be the worst ever recorded, according to economists at the National Bank of Canada.

Key quotes

“The downgrade to our 2020 forecasts for world GDP growth and OPEC/Russia price war prompted us to lower our projections for oil prices. WTI oil is now expected to average around $28/barrel this year.”

“Lower oil prices translate to a lower path for the Canadian dollar than anticipated earlier. We now see USD/CAD heading past 1.45 by mid-year before moving back down later in the year as WTI recovers.”