Loonie will hit 86 cents next year

[Locutus]

Capital Economics is expecting the loonie to weaken further this year against the U.S. dollar, before falling to US$0.86 next year.

David Madani, Canada economist with Capital Economics, said in a note Tuesday that the Canadian dollar would decline from its current level to US$0.92 by the end of 2012. His forecast is based on the further weakening of commodity prices and a lack of an interest rate hike from the Bank of Canada this year.

Oil prices are the biggest factor in that forecast. Prices for crude have already seen sharp pullbacks since May, with Brent prices retreating $30 to below $90 a barrel recently. Capital Economics currently forecasts Brent prices will end the year at $85 a barrel. Mr. Madani said that given the recent weakness, that bearish forecast could play out sooner than expected.

Weakness in commodity prices tends to hurt the Canadian dollar, as it is often viewed as being a so-called commodity currency.


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The loonie will hit US86 cents next year: Capital Economics | Trading Desk | Investing | Financial Post

 

[CDNBear]

Well that'll take a lot of the wind out of the neck beards sails.

But I'm sure he and his supporters will find some other disease to monger fear with.

 

[DurkaDurka]

Well that take a lot of the wind out of the neck beards sails.

But I'm sure he and his supporters will find some other disease to monger fear with.

I'm quite proud of my neck beard, you prick ! Maybe with a lower dollar I can export my trimmings for cheap

 

[CDNBear]

I'm quite proud of my neck beard, you prick ! Maybe with a lower dollar I can export my trimmings for cheap

I'll give you a buck a pound. I'm working on a new type of sleeping bag insulation.

 

[DurkaDurka]

I'll give you a buck a pound. I'm working on a new type of sleeping bag insulation.

Well, normally I market my excess face pubes as meat filler but your offer is remarkable.

 

[CDNBear]

Well, normally I market my excess face pubes as meat filler but your offer is remarkable.

I'll sweeten the deal with a version called the Durka Sack. Big enough for a man AND his goat. It comes standard with a rip stop liner, that the sharpest painted hooves will have a tough time tearing.

 

[Locutus]

I'll sweeten the deal with a version called the Durka Sack. Big enough for a man AND his goat. It comes standard with a rip stop liner, that the sharpest painted hooves will have a tough time tearing.

 

[petros]

I'm working on a new type of sleeping bag insulation.

Human meat?

 

[Kreskin]

I hope it goes back to 61 cents.

 

[DurkaDurka]

I'll sweeten the deal with a version called the Durka Sack. Big enough for a man AND his goat. It comes standard with a rip stop liner, that the sharpest painted hooves will have a tough time tearing.

Fack, my face pubes need ventilation dude, they ain't no ordinary sack filler. If you promise to bathe them with Pantene Plus, you might have a deal.