THE Canadian dollar - or 'loonie' - is hovering near a one-year low against the US 'greenback', but is expected to rebound by the end of the year, says Bloomberg.
'We assume we will get a NAFTA [North American Free Trade Agreement] deal at some point and once we get some clarity on that, I would expect a fairly serious rebound in the Canadian dollar,' said Karl Schamotta, director of foreign-exchange research and strategy at Cambridge Global Payments.
Said Shaun Osborne, chief foreign-exchange strategist at Bank of Nova Scotia in Toronto: 'Any pain in the Canadian dollar is likely to be transitory.'
Peter Hall, chief economist at Export Development Canada (EDC), expects the Canadian dollar to strengthen to 78 cents, or C$1.28 per US dollar, by the end of the year and further to 80 cents, or C$1.25, by the end of 2019.
Such currency forecasts are based on the widespread the optimistic assumption among Canadian dollar traders that President Donald Trump's threat to impose a raft of tariffs will not materialise.
But President Trump isn't letting up on his mission to rewrite the global trade order yet, Bloomberg says. 'He's slapped tariffs on China and imports of steel and aluminum from Canada and the European Union,' said its report.
Canada is set to retaliate with tariffs of up to C$16.6 billion on US imports. Canada, Mexico and the US remain committed to negotiating a new NAFTA deal, but talks have stalled since May and there is still no consensus about much of the agenda.
'We assume we will get a NAFTA [North American Free Trade Agreement] deal at some point and once we get some clarity on that, I would expect a fairly serious rebound in the Canadian dollar,' said Karl Schamotta, director of foreign-exchange research and strategy at Cambridge Global Payments.
Said Shaun Osborne, chief foreign-exchange strategist at Bank of Nova Scotia in Toronto: 'Any pain in the Canadian dollar is likely to be transitory.'
Peter Hall, chief economist at Export Development Canada (EDC), expects the Canadian dollar to strengthen to 78 cents, or C$1.28 per US dollar, by the end of the year and further to 80 cents, or C$1.25, by the end of 2019.
Such currency forecasts are based on the widespread the optimistic assumption among Canadian dollar traders that President Donald Trump's threat to impose a raft of tariffs will not materialise.
But President Trump isn't letting up on his mission to rewrite the global trade order yet, Bloomberg says. 'He's slapped tariffs on China and imports of steel and aluminum from Canada and the European Union,' said its report.
Canada is set to retaliate with tariffs of up to C$16.6 billion on US imports. Canada, Mexico and the US remain committed to negotiating a new NAFTA deal, but talks have stalled since May and there is still no consensus about much of the agenda.