"The Canadian dollar still stands out as being one of the more overvalued currencies in the G10 space," the bank said. "Canada's external balance remains negative, and would require foreign exchange depreciation to bring it back to a more sustainable level." Meanwhile, the bounce that the loonie has seen this week could be short-lived, according to Shaun Osborne, chief foreign exchange strategist at Scotiabank. "The week so far — albeit truncated by the holidays — looks potentially positive for the Canadian dollar," Osborne said in a note. But overall, a lot of bad news may already be in the loonie's price, according to Mazen Issa, senior foreign exchange strategist at TD Securities.

Source: CBC News January 04, 2019 09:00 UTC