Morgan Stanley: Central Bank Policy Divergence Provides Room for Significant Increases in the US/Canada

On June 26th, Jin10 Data reported that Morgan Stanley predicts a significant rise in the USD/CAD exchange rate, especially in the safe-haven market. The bank believes that as the policies of the Federal Reserve and the Bank of Canada diverge, the dovish stance of the Federal Reserve may be less pronounced than that of the Bank of Canada, benefiting the USD/CAD exchange rate. Investors may not have fully digested this policy divergence yet, providing room for a sharp rise in the USD/CAD exchange rate, especially in a safe-haven situation, where the USD/CAD may break through the 1.40 level.

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