Citigroup economist Veronica Clark reiterated her firm’s expectation of a half-point reduction in a note to clients.
Following the jobs data, MUFG strategists, including Derek Halpenny, recommended investors take a long position on the US dollar against the loonie with a target of 1.4550.
This target indicates a potential 2.5 percent drop in the Canadian dollar’s value from its current level.
Shaun Osborne, chief foreign-exchange strategist at Scotiabank, noted, “The Bank of Canada’s policy outlook is weighing on the Canadian dollar, and from a technical point-of-view, there’s little to suggest the currency will not keep sliding in the near term.”
According to Bloomberg Economics, “Details of Canada’s November labour survey are far more grim than the headline pace of hiring suggests, and will keep the BoC cutting rates. But with jobs still being added — in more cyclically sensitive industries — and inflation ticking up, we think policymakers will slow the easing pace, lowering the overnight rate target by just 25 basis points when they meet on December 11.”