FX Forecast: Gloomy Outlook For The Canadian Dollar
The Canadian dollar also known as the loonie, went down to 69 cents reaching its lowest point on Tuesday, January 12 for the first time since 2003.
It is projected that the Canadian dollar will continue to depreciate its value. David Doyle of Macquarie Capital Markets Canada Ltd. lowered his Canadian dollar forecast to 59 cents US on Tuesday, according to CBC News.
The Bank of Canada released its Business Outlook Survey on Monday, January 11 and this is the overall highlight.
MarketWatch reports, “Many market strategists believe that the central bank's projections for growth and inflation have been unrealistic, and that the central bank may soon cut rates, possibly at the central bank's meeting.”
Part of this fall is due to weak oil prices, which is now leaving the economy in a gloomy position for the Canadian dollar.
On the upside, in its Business Outlook Survey it states, “The depreciation of the Canadian dollar continues to affect businesses in various ways. Domestically oriented firms have already benefited from more solid tourism-related activity and expect further gains.”
Therefore if you are a traveler that is thinking about visiting Canada soon, you will now get the most value for your U.S. dollar.
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