The Financial Post reports in its Saturday, May 23, edition that Deutsche Bank and JPMorgan are piling up on wagers that the Canadian dollar will continue to fall in 2026 as tame inflation fuels a rethink of the interest-rate hike outlook. A Bloomberg dispatch to the Post reports that both banks are recommending trades on a weaker loonie against the U.S. dollar. They are also recommending selling the Canadian dollar against the Australian and Mexican currencies. "The Canadian dollar looks too strong versus the greenback relative to rate spreads," Tim Baker at Deutsche Bank said in an interview. The Canadian economy has been losing jobs and the increasing divergence with United States data showing higher inflation and stronger job growth also point to a weaker loonie, he added. Mr. Baker expects the Canadian dollar to slide toward $1.41 to the U.S. dollar over the next four months. The currency was trading at around $1.38 on Friday and ranked among the biggest losers this month, only faring better than the yen.