This would exacerbate the competitive challenge alluded to in the previous paragraph both in its own right and because the then-existing high demand for labour in Canada was increasing wage rates, the negative competitive impact of which would also be heightened by an appreciating loonie
I believe a wild card risk for the loonie
is a free fall in Brent if Saudi Arabia/OPEC does not preempt a glut in the world oil market.
I wish I could reassure them but I see no prospect of the loonie
to rise to 1.
However, as Canadian exports rise as the US economy accelerates, I would not be surprised to see the loonie
appreciate against the Japanese yen, possibly to the 110-112 range.
Business Council predicting that noticeable effects would come if the loonie
falls to between 83-85 cents on the U.
07 since it was obvious that Ottawa wanted a lower loonie
to boost Canadian exports while crude oil and metals markets were in free-fall.
In day-to-day rates, the loonie
slipped to just below 90 cents toward the end of last month, the first time it has sunk to that level since 2009.
The strengthening loonie
and import duties were a major contributor to the loss, says company spokesperson Marc Osborne.
In the end, the loonie
was able to produce gains against all its major counterparts - but they weren't easily won.
Amidst this booming activity, the extremely competitive value of the loonie
is particularly advantageous to domestic manufacturers sourcing raw material in the Canadian market.
On the topic of speculation, the premium built into the loonie
through a perceived sense that the economy could recovery more quickly than its major trade partners (especially its primary counterpart - the US) already seems to be in jeopardy as data erodes forecasts.
Limited Commodity Bloc event risk suggests that the Loonie
, Aussie, and Kiwi will continue to trade off of broader financial market moves.