Embattled Canadian Dollar Faces a 65-Cent Low Against the US Currency in 2017

free currency transfer voucher

Embattled Canadian Dollar Faces a 65-Cent Low Against the US Currency in 2017, Leading Pundits Say

After a tough 2016 trading season battling a formidable US dollar, the Canadian dollar is set to experience even more painful times the coming year. This is according to reliable currency prognosticators and fiscal experts from notable investment quarters. While some faintly convincing other-side-of-the-coin optimists have so far advanced some long-shot propositions that inspire much-needed hope for the loonie, statistics resoundingly put out all flickering rays of imminent recovery and boom.

Specifically, the worrying predictions foresaw a persistent low of about 65 cents throughout the next 12 months. According to David Doyle of Macquarie Capital Markets Canada Ltd, there are about two factors that are likely to conspire to push the embattled loonie well over 10 cents lower than its present standing.

These are the two major impetuses threatening to markedly diminish the value of the Canadian currency in the course of the coming 12 months - unsteady oil prices and soaring interest rates. The currency comparison guru and stocks forecast dozen cites the recent divergence monetary policy between the United States and Canada as a fundamental factor promoting the latter's increasing fiscal woes.

The US Federal Reserve raised its benchmark lending rates at the beginning of this month. The interest rates are additionally anticipated to hike a huge deal higher in 2017. In fact, Doyle's analysis depicts a chilling possibility of a triple increase in benchmark interest in 2017, since the Federal Reserve has already hinted its likelihood of embracing such a move.

With higher rates in the United States, the dollar is readily expected to gain strength against its counterpart's currency. Similarly, lower interest benchmarks in Canada mean that the Canadian money will lose a significant percentage compared to the now stronger US dollar. Recent announcements by the Bank of Canada that it intends to cut rates portend an incurable low of an estimated 65 cents throughout the 2017 trading season.

Oil prices will adversely affect the value of the Canadian dollar because the current price of $52 US for each barrel is no doubt expected to go beyond $57 per barrel. This foresight fortifies Doyle's argument that the possible 5-dollar increment in oil prices will send the gradually weakening Canadian currency plummeting quite slowly, yet steadily for about a year to come.

Political reasons have also been cited as some other additional reasons Canada's fiscal woes may continue to the very end of 2017. For instance, it's wisely calculated that Trump's election may present somewhat significant disadvantages and merits for the threatened loonie. Particularly, the unpredictable President-Elect may trigger some unprecedented geopolitical tensions that may work wonders for the country's dwindling money value.

On the average, every convincing possibility shows a cornered Canadian dollar, regardless of the strong factor you choose to base your best forecast on. And with the decline already started and with pundits foretelling lows that inspire negative feelings and fears across the global stocks market, there's pretty little hope for the doubly trapped loonie. The favorably staked United States dollar has every reason to look forward to an advantageously favorable pairing for at least more than 10 months starting now.

Company Details

Canadian Dollar Crisis

Get a quick quote

Open Account with Halo Financial

Halo Financial are located at:
11 Ivory House, Plantation Wharf, , Greater London, SW11 3TN, United Kingdom

Get a Quick Quote

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882