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The Dollar Bloc Currencies Aren't in The "Ideal" Environment, Says ABN Amro

BY MT Newswires | ECONOMIC | 11/12/25 08:15 AM EST

08:15 AM EST, 11/12/2025 (MT Newswires) -- The Australian dollar (AUD), New Zealand dollar (NZD) and the Canadian dollar (CAD or loonie) are currencies that perform well in an environment of strong global growth, strong global trade, higher domestic rates and risk-on environment in financial markets, said ABN Amro.

This isn't the environment that the bank expects for 2026.

However, these countries have modest growth and their central banks are reluctant to ease monetary policy aggressively in 2026 -- some have already done so in 2025 -- stated ABN Amro.

In addition, these currencies will likely profit from the general US dollar (USD) weakness that the bank predicts and have better current account and fiscal balances.

Canada is the most sensitive to policy changes in the United States and is facing quite high tariff rates from the U.S. As a consequence, ABN Amro is more negative on the Canadian economy and the Canadian dollar compared with the other two dollar bloc currencies.

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

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