News Analysis
The Canadian dollar not appreciating in tandem with oil has thrown a wrench into the Bank of Canada’s plans in its fight against inflation amid its claims that the economy will side-step a recession. Moreover, analysts see the loonie weakening and crude prices still benefiting from impediments to higher global supply—a combination that could lead to more inflation.
Currency markets have been weighing in on global recession fears, underlined by broad strength in the U.S. dollar. And since early June, the Canadian dollar has been drifting lower similar to the price of oil—a return to greater correlation….