09:03 AM EST, 02/06/2026 (MT Newswires) -- Rosenberg Research revised its briefly-held constructive view on the Canadian dollar (CAD or loonie) in light of the economy's "complete failure to respond to the Bank of Canada's rate cuts so far.

Although the Canadian dollar has rallied against the US dollar (USD) in the last few months, this has been a consequence of US dollar weakness rather than loonie strength, noted Rosenberg Research.

Interest-rate-sensitive and currency-sensitive sectors of the economy, like housing construction and manufacturing, are simply not growing, and are crying out for further easing, stated Rosenberg.

The current unemployment rate is almost a full percentage point above the equilibrium level, meaning that a disinflationary output gap will persist into 2027, it added.

All of this means that Canada's central bank is likely not done, despite what markets seem to believe, and that the loonie will continue to lag other commodity-exporting currencies like the Australian dollar (AUD), according to Rosenberg.