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The latest Reuters poll on the outlook for the Canadian dollar showed that the USD/CAD pair will fall over the coming year, as the Bank of Canada will refraining from cutting rates amid a recovery in the domestic economy while the Fed is expected to resort to monetary policy easing.

Key Findings:

“After first dipping a little over 1% to 1.32 per U.S. dollar in three months, the poll of nearly 50 currency analysts expects the Canadian dollar to have risen 0.5% to 1.30 per U.S. dollar, or 76.92 U.S. cents, in 12 months from about 1.3065 on Friday.

That is slightly stronger than the 1.31 projection in June’s poll.

The loonie has climbed well over 4% since the start of 2019, the best performance among G10 currencies. Still, Canada exports many commodities, including oil, so its economy could be hurt by global trade frictions.”