“Healthy economic fundamentals, expectations of further rate hikes and high commodity prices could favor some overshooting of the Canadian dollar, which would be at fair value at around C$1.20 (to the U.S. dollar).”
“Both robust global demand and a weaker sterling in the months ahead should allow the external sector to provide growth with a slightly positive contribution this year.”
“Inflationary pressures should also remain under control, thanks to slowing earnings growth which should avoid the need for any rate hike by the end of 2006.”
