Included are forecasts on the Canadian
dollar from a number of banks. The
range is between 80-90 cents. If they are
correct we are still at the low
end of the range.The rate today is 81.72
cents. Investors with U.S. dollars
should consider the Capital Gain potential
and Canada'a higher interest
rates as compared to the U.S. dollar.
Here is a quote from TD Bank:
"The Canadian economy has weathered a major
foreign exchange shock over the
past two years, but the adjustment process
is far from over, this is
because of the lagged effects from the
appreciation to date, and because
the risk of further correction in the U.S.
currency means the Canadian
dollar could head even higher."
End of 2005 forecast for Canadian dollar in
U.S. cents:
HSBC: 85 cents. Short term correction on
the Canadian dollar to below 80
cents , then a move upward to as high as 87
cents.
Bank Of Nova Scotia: 90.1 cents
J.P Morgan Canada: 85 cents
Royal bank: 80 cents
TD Bank: 84 cents
National Bank: 85 cents