The Canadian dollar has taken a breather from its depreciating trend, as oil prices have remained fairly steady and the U.S. dollar has stopped strengthening.
However, there is significant downside risk to the loonie over the near-term, in line with downside risks to oil prices, and the likelihood the U.S. dollar will strengthen again as the market becomes more confident about U.S. rate hikes.
"Renewed weakness could see the loonie break back below 80 cents U.S., before appreciating in 2016." estimates TD Economics
