Forex Analysts Predict the Fall of the Canadian Dollar
Posted by Edward Dy on August 13th, 2008
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Photo credit: neonals
The Canadian Dollar or the loonie continues to plummet. The declining prices of the country’s natural resource coupled with the credit crunch have exacted a severe blow on Canada’s economy, which made it to actually contract during the most recent month. Now, the Central Bank has made a forecast saying that the economy will see a growth of only 1% in 2008.
Most economists believe that Canadian Monetary Policy will in the near future be lagging behind US policy. This will most definitely be true if the Fed raises interest rates to fight inflation.
Photo credit: golanule
Based on these developments, everyone seems to agree that the loonie is quite overvalued, and will steadily decline over the next few years, falling to a more sustainable level versus the US Dollar.
The loonie will, by the end of December 2008, slide to C$1.05, and to C$1.09 as the 2010 begins, as predicted by forex experts.
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