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Forex: Loonie could get a boost in 2012 - National Bank Financial

By FXstreet.com,  December 05, 2011, 06:55:00 PM EDT

FXstreet.com (Barcelona) - Should Europe succeed in avoiding a global financial crisis, the outlook for the second half of
next year would be much improved, putting inflation back at the forefront of discussions in Canada, according to Matthieu Arseneau, economist at National Bank Financial in Canada.

"We expect the Bank of Canada to resume interest rate hikes in July and take the overnight rate to 1.75% by year end. If we're correct, markets will be revising their expectations and hence give a boost to the loonie by mid year. We continue to expect the loonie to test 1.05 US$ (i.e. much stronger than parity) by the middle of 2012" the analyst said.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

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