Canadian dollar likely to tumble further

Softening economic conditions and speculation about another interest rate cut from the Bank of Canada will keep downward pressure on the Canadian dollar. Allowing for a modest bounce back in the price of oil, we expect the loonie to stay close to US$0.80 through the year. But with domestic economic conditions expected to worsen relative to an improving US economy, it won't be long before the Canadian dollar tumbles further. We expect it to fall to US$0.75 in 2016.