Loonie Rallies on Economic Data, but Watchers Warn of Uncertain Future

The Canadian dollar has been rising in recent weeks, hitting 72.8 cents US before falling back to around 72.64 cents US. The rally is attributed in part to data suggesting a rebound in the Canadian economy in Q2 of 2026.

Karl Schamotta, chief market strategist at Corpay Cross-Border Solutions, believes that the bond buyback announcement from the US Treasury officials has weakened the US dollar and driven up the Canadian dollar exchange rate.

David Rosenberg of Rosenberg Research and Associates notes that the loonie was already rallying before Trump's announcement due to a string of data releases showing Canada's economic rebound.