(James Skinner – PoundSterling Live)
The Canadian Dollar could fall by a double digit number if the North American Free Trade Agreement negotiations take a turn for the worst in the New Year, according to strategists at TD Securities.
Long-term economic damage stemming from a breakup of NAFTA would be relatively limited for Canada argue analysts at the Canadian bank, although uncertainty over monetary policy and future trade arrangements would hit the currency in the short term.
Indeed, it is the impact on the Bank of Canada's policy settings that will be the transmission mechanism into changes in Canadian Dollar value.
“We expect Trump to remain motivated by his campaign promises and continue his protectionist rhetoric and threat tactics,” says Brittany Baumann, a macro strategist at TD Securities. Click here to read more.