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FX Forecasts

Despite Uncertainty about the US Debt Ceiling, the Greenback Rose in May!

May 30, 2023
Hendrix Vachon
Principal Economist

For financial markets, US dollars are akin to the blood flowing in our veins. We’ll always need blood to survive, and the financial markets will always need US dollars to thrive, especially in times of high uncertainty.

The US House and Senate hold the keys to ending the debt ceiling drama. After that, we’ll need to keep an eye on inflation and the health of the major economies. This will have an impact on investor risk aversion and interest rate expectations.

The Canadian dollar is expected to weaken slightly in the coming months, ending the summer at around C$1.39/US$ (US$0.72).