Loonies
According the currency forecast from CIBC World Markets, the Canadian dollar is likely done falling.

  • Here are the reasons CIBC has given for thier optimistic outlook:

  • 1. Stimulus Spending – “The use of deficit spending by the Liberal government to stimulate the economy means that the pressure on the currency from potential monetary easing has been significantly reduced.” – says the CIBC outlook. (This means the spending planned will help the GDP)

  • 2. OIL! Oil prices are said to recover in the near future. (Which is good for the dollar but sucks for those of us who enjoy paying little for our gas)

  • 3. U.S. Federal Reserve – to be 100% honest we don’t fully understand what this is…but according to CIBC’s report it will hold back interest rates.

  • So if all this is true, YAY! THE DOLLAR WILL ACTUALLY BE A DOLLAR AND NOT 75 CENTS!

  • (UPDATE: Don’t get too excited though…we made that mistake and got way too excited before realizing that all this really means for the close future is that it won’t go down anymore. It will take a few years for a noticeable rise, but at least it will be going up instead of down.)

  • That being said, before the dollar rises there may be one more dip. But let’s just cross our fingers and hope it doesn’t last long.

  • CBC has a more in depth look on the report from CIBC. <<<

  • Happy Thursday!

  • -P&D