The Canadian dollar will gain ground over the coming year as high commodity prices bolster Canada's economic outlook and the Bank of Canada likely continues to raise interest rates aggressively, a Reuters poll showed..
Falling Canadian dollar coins or loonies are pictured in North Vancouver, B.C., May 29, 2019. THE CANADIAN PRESS/Jonathan HaywardThe Canadian dollar will gain ground over the coming year as high commodity prices bolster Canada's economic outlook and the Bank of Canada likely continues to raise interest rates aggressively, a Reuters poll showed.
The median forecast in the poll was for Canada's currency to strengthen 0.4 per cent to 1.26 per U.S. dollar, or 79.37 U.S. cents, in three months' time, compared to 1.2568 in last month's forecast. It was then expected to climb to 1.23 in a year's time. "The Bank is taking a very proactive approach to policy making... Monetary policy is potentially going to move a little bit more quickly and maybe a bit more aggressively than the Fed in the next six months."
"The economy itself is doing very well," Osborne said. "I think from a commodity, terms of trade, point of view, there is a good news story there to tell for Canada."