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Canadian Dollar May Be Most Vulnerable Currency From This Week's Central Bank Meetings, Says SocGen

BY MT Newswires | ECONOMIC | 10/27/25 10:36 AM EDT

10:36 AM EDT, 10/27/2025 (MT Newswires) -- This week's central bank meetings are from the Federal Reserve and the Bank of Canada on Wednesday and the Bank of Japan on Thursday, said Societe Generale.

The Canadian dollar (CAD or loonie) may be the most vulnerable currency from all this, wrote the bank in a note to clients.

The Fed seems almost a shoe-in for a 25bps rate cut, but the messaging will be something like 'everything's uncertain, very uncertain, unusually uncertain..." and market conviction that a hike this week will be followed by another in December can't get much stronger, stated SocGen.

The BoC, by contrast, may need to disappoint the consensus call for lower rates if fresh CAD sogginess is to be avoided, added the bank.

United States rates are 150bps higher than Canadian ones and as rates fall, that gap feels wider, noted SocGen.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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