Canadian dollar forecasts shift higher as commodity markets rally

As Canada’s economy reopened in recent months and coronavirus infections declined, domestic data showed manufacturing activity expanding and the housing market recovering. Nearly a million jobs were added in June, and data due on Friday may show the economy added more jobs in July.

Ottawa is rolling out more than C$300 billion of economic support, about 15% of gross domestic product, and the Bank of Canada has cut interest rates to near zero and begun its first large-scale asset-purchase program. Its balance sheet as a share of GDP has expanded this year by more than some major counterparts, including the U.S. Federal Reserve.

Rising forecasts for the loonie come as the U.S. dollar weakens and commodities rally. Gold rose to a record high above $2,000 an ounce this week and oil traded on Wednesday at its highest since early March. Canada is a major producer of commodities.

“We think there is further upside for the loonie ahead given the potential for oil prices to rise further,” said Stephen Brown, senior Canada economist at Capital Economics. It sees the loonie at $1.29 in 12 months.

(For other stories from the August Reuters foreign exchange poll:)

(Reporting by Fergal Smith; Polling by Sarmista Sen and Khushboo Mittal)

Football news:

PSV for 9 million euros signed the defensive midfielder of Toulouse sanghar. They were Interested in Spartak
In the Premier League now give a penalty for almost any hit of the ball in the hand in the penalty area. Neither the players, nor the coaches, nor, it seems, the referees themselves like this
Granada's sponsor posted a picture of Joao Felix's heat map in the form of a penis after 1-6 with Atletico. Andalusians demand an apology
Safonov, Chalov and Magkeev were called up to the Russian U21 team for the matches against Estonia and Latvia
Khabib was ranked seventh in the ranking of the best-selling athletes of 2020. First place for Messi, second — for Ronaldo
Dzeko to the Juventus referee: it's always the same with them
Rhodri about 2:5 with Leicester: they were lucky. Football was unfair to Manchester City