Fighting over USMCA will mean ‘weaker for longer’ loonie: JPMorgan



Jeff Lagerquist | Yahoo Finance

JPMorgan Chase & Co. (JPM) anticipates a brawl between deeply divided U.S. lawmakers over the yet-to-be-ratified United States–Mexico–Canada Agreement (USMCA) that will cause a “weaker for longer” US$0.74 loonie.

The bank is calling for Canada’s currency to retreat to C$1.35 per U.S. dollar by the middle of 2019, revising its previous forecast of C$1.30.

Analysts Daniel Hui and Patrick Locke hold out little hope for bipartisan cooperation in ratifying the new North American trade deal, citing the current tension over the partial U.S. government shutdown as evidence the Democrats and Republicans are unlikely to find compromises.

This article originally appeared in Yahoo Finance here.