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Canada’s election unlikely to be a key driver of the loonie

We doubt that the outcome of next week’s federal election in Canada will have much bearing on the economy and the loonie. Instead, we still think that bond yield differentials and oil prices will be the main drivers of the Canadian dollar, and will push it lower against the US dollar over the next few years. In view of the wider interest, we are also sending this FX Markets Update to clients of our Canada service

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