The loonie.

A Nov 22, 2024 CBC News article, "Will the Canadian dollar slip below 70 cents US?" completely overlooks that the root cause of the loonie's drop in global FX markets is the Canadian finance sector's plunder of Canada's housing sector.

Here are three charts for you:

1. Canada house prices 1990 to 2024

2. Canada Inflation Rate 2020 to 2024

3. Bank of Canada target for the overnight rate vs. Prime Rate (2010 - 2024)

Note that house prices peaked in Q1 2022 when inflation, which had been rising steadily since Q1 2021, reached 5.7% and, inflation showing no sign of abating, it was inevitable that the BOC was going to raise interest rates, which it did in April, 2022. House prices rose sharply throughout 2021 into Q1 2022 as buyers sought to lock in mortgage rates in the 4% to 6% range before interest rates went up.

House prices correcting after Q1 2022 and house and condo prices declining throughout 2023 undoubtedly played a role in the BOC's decision to lower interest rates beginning in May, 2024, its rationale being (as evidenced by the Q2 2023 dead cat bounce in the house price chart in anticipation of this decrease) to prevent housing prices from declining further, which would threaten the stability of Canada's banks (the lion's share of whose business is selling mortgages which presumably will be paid in full) and secondary mortgage markets.

Canadian house and condo market predators have the BOC between a rock and a hard place: raise interest rates to stop the escalation of housing prices, and the bubble threatens to deflate; lower interest rates to support ridiculously inflated housing prices, and the loonie falls.