If you’re thinking about travelling south this winter and are hoping the Canadian dollar will bounce back just in time to make it more affordable, there is some bad news in the tea leaves.
There is something of a consensus among bankers that the Canadian dollar is not going anywhere. 69-cents is the forecast for the near term and, perhaps, we might touch 70-cents by mid-year by more than one institution.
This is quite a contrast from even a couple months ago when some bank economists were projecting a rebound of several pennies against the American greenback by summer. Now they are suggesting our buck will float around the 69 or 70-cent mark for months.
Politics in our nation can shoulder the blame. The process chosen by the Prime Minister for his departure has undermined confidence in Canada globally. Currency is the barometer of a nation’s international reputation and, right now, ours is weak with little sign of improvement for at least half a year, interestingly, roughly the same timing as a federal election.
