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That was already Kotsopoulos assumption. The wow classic gold Canadian currency was having a lacklustre 2018, but up until this week, the majority of forecasters saw it gaining strength over the remainder of the year. don agree with the consensus forecast, Kotsopoulos said. His contrarian opinion looks smart. The currency kept falling and was trading at about US76 when Bay Street started shutting down for the weekend.

Persistently weak inflation had been one of the main arguments against further interest rate increases. But inflation is coming in faster than the central bank had forecast in October, when it predicted it would average 1.4 per cent in the final three months of 2017. Policy makers don expect a sustained return to 2 per cent inflation until the end of next year.

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Expect Bank of Canada to maintain interest rates in September unless GDP is off the chartsCanadian dollar whipsaws as row with Saudi Arabia escalatesBut in the view of TD, the loonie gains will probably fizzle as traders shift their focus back to comments over the weekend by Bank of Canada Governor Stephen Poloz downplaying the prospect of aggressive rate increases. He spoke in Wyoming at a symposium of central bankers.

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