"At the end of last year, the Bank of Canada was forced to take a more cautious position due to the deterioration of a number of economic indicators. The rapid fall in oil prices also played an important role in this," the experts said.
"Meanwhile, it is the prospects for the development of the situation in the black gold market that allow us to look to the future with optimism. We believe that sales have already gone too far, and we see the potential for a recovery in commodity prices. The growth of oil prices should support the economy of Canada. Against this background, the country's central bank may raise the interest rate twice this year, making the differential rates of the United States and Canada remain relatively stable," they added.
According to the BMO forecast, at the end of the first quarter, the USD / CAD pair will trade near the level of 1.32, and by the end of the year will reach the level of 1.28.
The material has been provided by InstaForex Company - www.instaforex.com