The Financial Post reports in its Wednesday edition that the loonie ended 2023 on something of a hot streak, but will be hard pressed to keep up the momentum in the new year as headwinds gather and fundamentals favour the greenback, currency analysts say. The Post's Gigi Suhanic writes that the Canadian dollar clawed its way back above 75.5 U.S. cents in late December after trading close to 72 U.S. cents as recently as late October. The rally completed a seesaw 2023 in which the loonie rose and fell within a range of about 72 U.S. cents to 76 U.S. cents. If the Bank of Canada starts to cut interest rates sooner than the Federal Reserve, as some are predicting, a reversal from the recent highs could be imminent. CIBC Capital Markets FX strategy head Bipan Rai says: "We're expecting a period of weakness over the first quarter for the Canadian dollar. That is primarily tied to our view that we don't think the market is pricing the U.S. dollar appropriately." Current market sentiment has the Fed cutting interest rates first as investors bet that the U.S. central bank is on course to hit its inflation targets, after a dovish pivot by Fed chair Jerome Powell. Mr. Rai, however, is among those questioning that consensus.