08:21 AM EST, 11/06/2024 (MT Newswires) -- The Canadian dollar, along with the Mexican peso, is vulnerable to downside pressure, not just from Tuesday's United States election results but from the fact that there is a "very dovish" Bank of Canada bumping against a more circumspect Federal Reserve, said Rosenberg Research.

The "Summary of Governing Council Deliberations" was released by the Bank of Canada on Tuesday -- similar to the FOMC minutes -- and according to Rosenberg the key conclusion was this:

"Governing Council also discussed the future path for the policy interest rate. They agreed that if the economy continued to evolve roughly as expected, they anticipated they would be reducing the policy interest rate further. Growth needs to pick up to absorb excess supply in the economy, to keep the labour market from slowing further, and to reduce the downward pressures on inflation as upward pressures ease. Members shared perspectives about how much more the policy rate would need to be reduced."

Not if or when but by how much, pointed out Rosenberg. Stay long Canadian bonds and short the currency, it added.