Canadian Dollar and Economic Outlook With David Watt, RBC Capital Markets
The loonie has been on a real run lately, or the U.S. dollar has been in a real slump depending on how you look at it. While the rise of our dollar may have positive implications for Canadian consumers shopping in the U.S., the impact of a strong loonie on Canadian exporters is another story. The Unites States is Canada’s largest agricultural trading partner. Canadian exporters need a stronger U.S. dollar to be competitive globally. The Canadian and US economies are too intertwined for us to see our high dollar as a competitive dollar. High oil and high commodities won’t mean much to us if our chief export partner can’t afford to buy Canadian products.
David Watt, RBC Capital Markets in Toronto discussed with me his outlook for the Canadian Dollar through the summer, the health of the US economy, interest rates and what the Bank of Canada’s strategy will be for the rest of 2011.
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