What's behind recent strength in the Canadian dollar?

Opinion

On Friday, the Canadian dollar rose nearly a cent relative to the U.S. dollar. The sudden ‘strength’ came from a couple of sources. First, more confidence that the Bank of Canada will continue the path gradual rate hikes; second, a weaker U.S. Dollar. Recent Canadian economic data warrants the Bank’s outlook for gradual rate increases. Especially as Stephen Poloz, the governor of the Bank of Canada, has made it clear over the last month that the Bank will continue to make ‘data dependent’ decisions even in the presence of trade uncertainty. While the Bank will take into account the risks…