Derek Halpenny at Mitsubishi UFJ Financial Group said in a note the Canadian
dollar could weaken if the Bank of Canada signals it will hold rates, which
would counter market pricing of hikes before year-end. He said BOC governor
MACKLEM may acknowledge upside inflation risk from the Iran conflict but, given
relatively mild core inflation, could signal scope to wait. Halpenny added trade
uncertainty and equity volatility linked to AI concerns could also pressure the
CAD.
