After moving up over 80 cents in late July, the Canadian dollar has taken a pause in its dramatic move from just over 72 cents in early May.
The dollar is now at a two-week low as investors in the currency pocketed profits, and there are worries it could struggle at lower levels for some time.
The worries over Canada’s economic growth come with the slowdown in the real estate market in the country’s two hottest cities.
Analysts now say the Bank of Canada may now be reticent to hike rates again in the fall as the fragile housing market weighs on the overall economy.
If this real estate induced economic slowdown were to continue, and the U.S. raises rates in the fall as expected, the once extremely bullish scenario for the Canadian dollar may cool in the interim, at least until the Bank of Canada moves again.
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