The Canadian dollar strengthen over the week as the oil price continued to rise on the basis that global oil production will be frozen by some of the world’s major producers.
The Canadian dollar firmed against the US dollar trading from $1.30 to record a low of $1.2740 at one stage. The Bank of Canada left its bank rate unchanged at 0.5% with inflation currently tracking well below the 2% target level. The Canadian economy however has rebounded well following the earlier weakness induced by the oil price collapse earlier in the year. As the US economy maintains momentum there is every chance, failing another deep oil price decline, that Canada’s economy will deliver reasonable GDP growth for 2016, possibly 1.7% and a forecasted 2.3% for 2017.